What will be the percentage change in the bond price

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Reference no: EM131021562

A bond has a coupon rate of 8 percent, 7 years to maturity, semiannual interest payments, and a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the bond price?

-10.16 percent

-9.87 percent

-9.56 percent

-10.02 percent

-10.67 percent

Reference no: EM131021562

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