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16) A bond has a par value of $1000 and a time to maturity of 4 years. The current yield to maturity is 6%. The

16) A bond has a par value of $1000 and a time to maturity of 4 years. The current yield to maturity is 6%. The duration of the bond is 3.55. If the market price drops by 2% today, what must be the new yield to maturity? a) 5.4% b) 6.6% c) 8.0% d) 8.6%

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