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Steve bought a bond with a modified duration of 7.40. By approximately what percentage will the bond price change assuming interest rates increase by 50
Steve bought a bond with a modified duration of 7.40. By approximately what percentage will the bond price change assuming interest rates increase by 50 basis points? (use imprecise calculation).
+3.70%.
-3.70%.
-7.40%.
+7.40%.
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