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Estimate the percentage price change

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Question - You own a 7-year zero coupon bond. The market rate is currently 6.2%, but it is forecast to fall to 5.2%. Estimate the percentage price change that you expect for the bond that you hold.

a. +6.59%

b. -6.65%

c. -6.59%

d. +6.65%

Reference no: EM133013296

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