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A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). Purchase price of the bond: $955.48

A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). Purchase price of the bond: $955.48

Assume that market yields rise by 40 basis points. What do you expect to happen to the bonds price, using modified duration? $17.31, $45.12, 28.99, $36.75

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