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You own $1,000,0000 face value of a bullet security valued at par ($100). Assume the bond has a Modified Duration of 8 years. Which of

You own $1,000,0000 face value of a bullet security valued at par ($100). Assume the bond has a Modified Duration of 8 years. Which of the following would be the best estimate the bonds price change if market yields immediately increased by 100 basis points (bps)?

a) +$80,000

b) (-$80,000)

c) +8,000

d) (-$8,000)

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