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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 20 basis points. Your predicted price change on this bond is ________. (Select the closest answer.)

a) +.94%

b) .94%

c) 4.72%

d) +4.72%

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