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Suppose that the value of a bonds annual modified duration and convexity are 5.13 and 53.24, respectively. If the bonds yield-to-maturity decreases by 25 bps,
Suppose that the value of a bonds annual modified duration and convexity are 5.13 and 53.24, respectively. If the bonds yield-to-maturity decreases by 25 bps, qhat is the expected percentage price change (You must provide your calculations)? A. 1.29%. B. 1.30%. C. 1.31%. D. 1.32%.
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