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A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent coupon. What is the % change in price
A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent coupon. What is the % change in price if the yield to maturity changes from 6.00% to 7.00%? What is the interest rate risk of the bond?
| A. | -7.48%, 7.48% | |
| B. | -12.51%, 12.51%
| |
| C. | 7.48%, 7.48% | |
| D. | None of the above
| |
| E. | -12.51%, -12.51% |
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