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You own a bond which has a Macauley duration of 6 years and semi-annual coupons. Market interest rates on bonds of this type are currently

You own a bond which has a Macauley duration of 6 years and semi-annual coupons. Market interest rates on bonds of this type are currently 5% but you believe the Reserve Bank is about to decrease interest rates by 10 basis points. Your predicted price change on this bond is ________. Group of answer choices

-0.58% +0.59% +0.57% +0.60% -0.57%

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