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Assume you are using duration to calculate bond price sensitivity to interest rates. How much would you anticipate bond prices to change and in what
Assume you are using duration to calculate bond price sensitivity to interest rates. How much would you anticipate bond prices to change and in what direction if you expect that rates will rise by 100 basis points (1%) across the entire term structure if you considering buying a 5-year, 4% annual coupon bond and the current required return is 7%.
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