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Suppose a bond has a modified duration of 3. If the interest rate increases by 5%, the bond price will 1. increase by 15% 2.

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Suppose a bond has a modified duration of 3. If the interest rate increases by 5%, the bond price will 1. increase by 15% 2. decrease by 15% 3. increase by less than 15% 4. decrease by less than 15% 5. not change

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