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A bond is currently selling for $1,100 with a yield to maturity of 6.0% and a modified duration of 3.02 years. Suppose the yield of

A bond is currently selling for $1,100 with a yield to maturity of 6.0% and a modified duration of 3.02 years. Suppose the yield of the bond changes from 6.0% to 6.5%. Use the modified duration to estimate the percentage change in the price of the bond.

A) -1.42% B) 1.42% C) -1.51% D) 1.51%

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