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4. You have a 8 year bond with a par value of $1,000 that makes 7.15% annual coupon payments and the market discount rate is

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4. You have a 8 year bond with a par value of $1,000 that makes 7.15% annual coupon payments and the market discount rate is 6.70%. The bond has a Macaulay duration of 6.3856. Given this information, if the market yield increases by 20bp, what is the estimated percentage change in price of the bond? A. 1.20% B. -1.20% C. 1.28% D. -1.28% E. None of the above

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