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An annual payment bond has a 9 percent required return. Interest rates are projected to fall 25 basis points. The bond's duration is 12 years.
An annual payment bond has a 9 percent required return. Interest rates are projected to fall 25 basis points. The bond's duration is 12 years. What is the predicted price change?
| 2.75 percent | |
| 1.95 percent | |
| -1.95 percent | |
| -2.75 percent | |
| 33.33 percent |
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