What is the expected percentage price change

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A bond has an annual modified duration of 7.020 and annual convexity of 65.180. If the bond's yield-to-maturity decreases by 25 basis points, what is the expected percentage price change?

Discuss the limitation of calculating a bond portfolio's duration as the weighted average of the yield durations of the individual bonds that compose the portfolio.

Reference no: EM133056208

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