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The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from
The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100.Determine the bond's price elasticity.
-0.67.
-0.55.
-0.44.
-0.36.
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
