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A large financial firm holds a bond in its investment portfolio whose duration is 7 years. Its current market price is $1,015.50. While market interest
A large financial firm holds a bond in its investment portfolio whose duration is 7 years. Its current market price is $1,015.50. While market interest rates are currently at 7.75 percent for comparable quality securities, a decrease in interest rates to 7.5 percent is expected in the coming weeks. What changes (in percentage terms) will this bonds price experience if market interest rates change as anticipated?
Answer: __________% (two decimal points)
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