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A bond has the following characteristics: Maturity of 30 years Modified duration of 16.9 years Yield to maturity of 6.5% If the yield to maturitydecreasesby

A bond has the following characteristics:

  • Maturity of 30 years
  • Modified duration of 16.9 years
  • Yield to maturity of 6.5%

If the yield to maturitydecreasesby 0.75%, what will be the percentage change in the bond's price?

A. +12.675%.

B. -12.675%.

C. 0.750%

D. -0.750%

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