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Use the Approximate Modified Duration and Approximate Convexity Measure (calculated below) to determine the expected percentage change in price for a bond whose credit rating

Use the Approximate Modified Duration and Approximate Convexity Measure (calculated below) to determine the expected percentage change in price for a bond whose credit rating is expected to be downgraded such that the bond would be expected to offer an additional 80 bps of yield (i.e., YTM) annually. Approximate Modified Duration = 6.314 Approximate Convexity Measure = 47.781 Group of answer choices -5.20% -4.90% -4.74%

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