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What change will this bond price experience

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Question: A bank holds a bond in its investment portfolio whose duration is 13.5 years. Its cur-rent market price is $1,020. While market interest rates are currently at 8 percent for comparable quality securities, a decrease in interest rates to 7.25 percent is expected in the coming weeks. What change (in percentage terms) will this bond's price experience if market interest rates change as anticipated?

Reference no: EM131717540

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