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A bond currently has a price of $1,050. The yield on the bond is 6%. The bond has a modified duration (D*) of 7.78.

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A bond currently has a price of $1,050. The yield on the bond is 6%. The bond has a modified duration (D*) of 7.78. If the yield increases 27 basis points (or 0.27%), the predicted new price using Duration Rule is Round up to the next dollar Note: 100 basis points = 1%

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