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Maitre D owns a bond with a coupon and maturity that generates a modified duration of D=8 years. If the yield to maturity rises by

image text in transcribed Maitre D owns a bond with a coupon and maturity that generates a modified duration of D=8 years. If the yield to maturity rises by 25 bps (considered this to be a small change), then the price of the bond Pbb will: (mark the CORRECT answer) a. fall by 2.00% b. rise by 2.00% c. fall by 1.00% d. fall by 20bps

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