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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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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