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An analyst determines the following information about a semiannual coupon bond: Par value $1,000 Modified duration 10 Current price $800 Yield to maturity (YTM) 8%

An analyst determines the following information about a semiannual coupon bond:

Par value $1,000 Modified duration 10 Current price $800 Yield to maturity (YTM) 8%

If the YTM increases to 9 percent, the predicted change in price, using the modified duration concept, is closest to __________.

A. -$80.00
D. +$10.00
B. +$80.00
C. -$10.00

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