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Question Homework Unanswered A bond has a MacD of 14.6, ModD of 13.8 and DVO1 of $2.5. Suppose its yield to maturity goes down one

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Question Homework Unanswered A bond has a MacD of 14.6, ModD of 13.8 and DVO1 of $2.5. Suppose its yield to maturity goes down one percentage point(e.g., from 5% to 4%). Which of the following is most likely to be true? (Hint: 1% = 100 basis points) A The bond's price should decrease by approximately $14.6. O B The bond's price should increase by approximately $13.8. O C The bond's price should increase by approximately $2.5. O D The bond's price should increase by approximately 13.8%. O E The bond's price should increase by approximately 14.6%. EF Question Homework Unanswered A bond has a MacD of 14.6, ModD of 13.8 and DVO1 of $2.5. Suppose its yield to maturity goes down one percentage point(e.g., from 5% to 4%). Which of the following is most likely to be true? (Hint: 1% = 100 basis points) A The bond's price should decrease by approximately $14.6. O B The bond's price should increase by approximately $13.8. O C The bond's price should increase by approximately $2.5. O D The bond's price should increase by approximately 13.8%. O E The bond's price should increase by approximately 14.6%. EF

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