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Suppose you buy a coupon bond with 5% yield. The maturity of this bond is 11 years, the modified duration of this bond is 8
Suppose you buy a coupon bond with 5% yield. The maturity of this bond is 11 years, the modified duration of this bond is 8 years, and the Macaulay duration of this bond is 9 years. Interest rates have increased after your purchase. If you want to earn a return higher than 5%, when should you sell the bond?
A. | in 8 years | |
B. | in 9 years | |
C. | in 7 years | |
D. | in 10 years |
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