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An investor is considering purchasing a Treasury bond with 2 years remaining until maturity, a 5.5 percent coupon and a 5.25 percent required rate of
An investor is considering purchasing a Treasury bond with 2 years remaining until maturity, a 5.5 percent coupon and a 5.25 percent required rate of return. The bond pays interest semiannually. If annual market yields decrease by 30 basis points, what is the predicted price change in dollars based on the bonds duration? Round your answer to the nearest cent.
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