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Bond A is a 25-year/6% bond selling at 70.3570. Bond A has a dollar duration of 747.2009. Bond B is a 20-year/5% bond selling at

Bond A is a 25-year/6% bond selling at 70.3570. Bond A has a dollar duration of 747.2009. Bond B is a 20-year/5% bond selling at 70.3570. Bond B has a modified duration of 10.62. When the market interest rate increases form 9% to 9.1%? Which of the following is correct? Question 8Answer a. the approximate percentage price change of Bond A is -0.106% b. the approximate percentage price change of Bond B is -10.62% c. the approximate dollar price change of Bond A is $ -0.0747 d. the approximate percentage price change of Bond B is -1.062%

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