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You purchase a 3-year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is $1,000. The current YTM is 6%.

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You purchase a 3-year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is $1,000. The current YTM is 6%. What will be the new price of the bond by using the duration model if the YTM increases by 50 basis points? A. $1,067.33 B. $985.82 C. $986.15 D. $1.039.60

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