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Bond Price and Interest Rate

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Consider a bond with a duration of 6 years having a yield to maturity of 8% with interest rates expected to increase by 50 basis points (1/2 of 1%). What is the estimated percentage change in the price of the bond if this were to occur?

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The expert calculates the change in bond price when interest rate increases.

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Consider a bond with a duration of 6 years having a yield to maturity of 8% with interest rates expected to increase by 50 basis points (1/2 of ...

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