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Level I
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Fixed Income
Fixed Income
Hard
A bond has a modified duration of 7.2 and a convexity of 62. If the yield increases by 100 basis points, the estimated percentage price change using both duration and convexity is closest to:
A
-6.89%
B
-7.20%
C
-7.51%
D
-6.58%
Select an answer to continue
Tags
#duration
#convexity
#interest-rate-risk
#price-change
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