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Assume that the yield cur suddenly shifts to the new values below upon the release of some important economic news: MATURITY 0.5 Years Yield


Assume that the yield cur suddenly shifts to the new values below upon the release of some important economic news: MATURITY 0.5 Years Yield (APR) 2.40% 1.0 Years 5.00% 1.5 Years 2.0 Years 2.5 Years 3.0 Years 3.5 Years 4.0 Years 5.60% 3.70% 5.80% 9.20% 12.80% 13.80% B) By what percentage should the price of that same bond suddenly increase (+) or decrease (-) in response to the change in the yield curve? % when the yield curve shifts. The price of the bond should change by (Round your answer to 2 decimal places) (If your answer is a decrease, include the '-' sign. e.g. -12.34%)

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