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A C.D.O promises to pay an amount $ X , 5 years from today; what is- approximately- the percent change in the value of the
A C.D.O promises to pay an amount $ X , 5 years from today; what is- approximately- the percent change in the value of the above asset if the required yield increases by 2 percentage points?
a): $X/5 b): 2X % c) -10% d) -5% e) X/X f): Not enough information to tell
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