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Interest rate changes as anticipated

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A financial firm holds bond in its investment portfolio whose duration is 15 years. Its current market price is $975. While market interest rate is currently at 6 percent for securities, a decrease in interest rate to 5.75 . What change (in percentage terms) will this bond price experience if interest rate changes as anticipated? Give proper explain percent is expected in the coming week sations.

Reference no: EM132538845

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