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A 5 - year bond that pays interest semiannually has a 7 % coupon and an 8 % quoted yield to maturity. Annual interest rates

5 -

year bond that pays interest semiannually has a

7 %

coupon and an

8 %

quoted yield to maturity. Annual interest rates increase

50

basis points. What is the predicted change in the bond price after the interest rate change?

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