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A bond with a 9-year MODIFIED duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.84%,
A bond with a 9-year MODIFIED duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.84%, you would predict that the new value of the bond will be approximately _________.
A. $1,075.25
B. $1,085.75
C $1,094.40
D. $1,095.50
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