A bond with exactly nine years remaining until maturity offers a 3% coupon rate with annual coupons.
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A bond with exactly nine years remaining until maturity offers a 3% coupon rate with annual coupons. The bond, with a yield-to-maturity of 5%, is priced at 85.784357 per 100 of par value. The estimated price value of a basis point for the bond is closest to:
A. 0.0086.
B. 0.0648.
C. 0.1295.
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