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A financial firm holds a bond in its investment portfolio whose duration is 15 years. Its current market price is $975. While market interest rates
A financial firm holds a bond in its investment portfolio whose duration is 15 years. Its current market price is $975. While market interest rates are currently at 6 percent for comparable quality securities, a decrease in interest rates to 5.6 percent is expected in the coming weeks. What change (in percentage terms) will this bonds price experience if market interest rates change as anticipated?
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