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Question 2 1. A portfolio manager is considering the effect of a 75 basis point change of interest rate on a bond with Par =

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Question 2 1. A portfolio manager is considering the effect of a 75 basis point change of interest rate on a bond with Par = 1000, Price = $985 and Duration =4.8. The most appropriate price change would be a None of the alternatives b3.6% of 1000 C c 4.8% of 1000 d4.8% of 985 e3.6% of 985

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