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Percentage change in the bond price

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A ten-year bond has a yield of 12% and a duration of 7.206 years. If the bond's yield increases by 50 basis points, what is the percentage change in the bond's price as predicted by the duration formula? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

The bond's price: (increased/decreased) _________%.

Reference no: EM131466700

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