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2 A bond has a Macaulay duration of 10.50 and is priced to yield 8.5%. If interest rates go up so that the yield goes

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2 A bond has a Macaulay duration of 10.50 and is priced to yield 8.5%. If interest rates go up so that the yield goes to 9.0%, what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 8%, what will be the bond's percentage change in price? Comment on your findings. If interest rates go up to 9.0%, the percentage change in the price of the bond is If interest rates go down to 8%, the percentage change in the price of the bond is Comment on your findings. (Select the best answer below.) %. (Round to two decimal places.) %. (Round to two decimal places.) OA. As interest rates increase or decrease, the price of the bond will always increase. O B. As interest rates decrease, the price of the bond decreases. As interest rates increase, the price of the bond increases. O C. As interest rates increase or decrease, the price of the bond remains the same. 0 D. As interest rates increase, the price of the bond decreases. As interest rates decrease, the price of the bond increases

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