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Question 7 A bond selling at par has a modified duration of 12 years and a convexity of 265. A 1% decrease in yleld would

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Question 7 A bond selling at par has a modified duration of 12 years and a convexity of 265. A 1% decrease in yleld would cause its price to rise by 12% if X we use duration only. What would be the percentage price change if we use both duration and convexity? Please enter your answer in percent rounded to the nearest basis point Selected Answer: 10.70

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