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You own a bond that has a duration of 5 years. Interest rates are currently 6%, but you believe the Fed is about to increase
You own a bond that has a duration of 5 years. Interest rates are currently 6%, but you believe the Fed is about to increase interest rates by 27 basis points. Your predicted price change on this bond is ________. (Select the closest answer.)
a)1.27%
b)+4.72%
c)4.72%
d)+1.27%
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