What will the percentage change in the price of this bond

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Reference no: EM13825890

A 15-year, 4 percent coupon bond with a face value of $1,000 pays interest semiannually. Assume the bond currently sells at par. What will the percentage change in the price of this bond be if market rates increase by 10 percent?

1.32%

-1.32%

1.96%

-1.96%

-1.13%

Reference no: EM13825890

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