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Suppose a bonds price is expected to decrease by 3% if its market discount rate increases by 50 bps. If the bonds market discount rate
Suppose a bonds price is expected to decrease by 3% if its market discount rate increases by 50 bps. If the bonds market discount rate decreases by 50 bps, the bond price is most likely to change by:
- 3%
- Less than 3%
- More than 3%
What is the best terminology to describe this pattern Please explain your answer?
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