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A straight bond is priced at par of $100 and yields 5.0%. If it has a modified duration of 3.5, then the price change in

A straight bond is priced at par of $100 and yields 5.0%. If it has a modified duration of 3.5, then the price change in response to a 50-bps increase in yield will be:

A .An increase in price of $1.67

B. A decrease in price greater than $1.75

C. A decrease in price of $1.75

D. An increase in price of $1.75

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