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Bond Percentage Change

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Consider an American bond with an effective duration (which is pretty much the same as modified duration, but more precise) of 6.76 years having a yield to maturity of 7% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?

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The change in price is calculated as
approximate percentage ...

Solution Summary

The expert examines bond percentage change for American Bonds.