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If a bond has a convexity of 60 and modified duration of 10, the convexity...

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Finance

If a bond has a convexity of 60 and modified duration of 10, the convexity adjustment (to a duration-based approximation) associated with a 25 basis point interest rate decline is closest to:

a. -0.02875%

b. -0.01875%

c. +0.01875%

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