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A $1,000 face value bond has a coupon rate of 4.00%, 10 years to maturity, semiannual coupon payments, and a yield to maturity of 8.00%.

A $1,000 face value bond has a coupon rate of 4.00%, 10 years to maturity, semiannual coupon payments, and a yield to maturity of 8.00%. If interest rates suddenly rise by 1.40%, what will be the percentage change in the bond price?

a.

-5.89%

b.

-10.08%

c.

-18.94%

d.

16.45%

e.

22.72%

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