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you hold a bond with three years to maturity and a yield to maturity of 10% . If the maturity of the bond decreases to

you hold a bond with three years to maturity and a yield to maturity of 10% . If the maturity of the bond decreases to 8%, the duration rule predicts that the price of the bond will increase by 4.9736%. which of the following statement can be true

a) The actual price increase is 4.8681%

b) The actual price increase is 5.0235%

c) The bond is selling at par

d) The bond is a zero-coupon bond

e) None of these is possible.

Please provide answer with working. Thanks.

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