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An analyst is evaluating a bond that has a modified duration of 12 and a convexity statistic of 150.5. Using both of these measures, the estimated percent decline in price for this bond for a 150 basis point increase in the bond’s yield to maturity is closest to:

A –14.61%.

B –16.31%.

C –19.69%.

D –21.39%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428046

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