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7. A 6% coupon bond paying interest semi-annually has a modified duration of 10 years, sells for $510, and is priced at a yield to

A 6% coupon bond paying interest semi-annually has a modified duration of 10 years, sells for $510, and is priced at a yield to maturity (YTM) of 8.60%. If the YTM increases to 9.85%, the price, using the concept of duration, is predicted to:

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decrease by $58.70

decrease by $63.75

decrease by $66.49

decrease by $61.12

decrease by $60.76

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