Citgroup bond is a zero coupon bond

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A citigroup bond with maturity if six years and a yield of 6% has a modified duration if 4.51 years. If interest rates are expected to fall by 0.60%, what price change do you expect for this bond?

Assume that the citgroup bond (from question above) is a zero coupon bond ( with the same maturity and yield). Recompute your answer ( for the change in price) from the prvious problem.

Reference no: EM131841868

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