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Steel Pier Company has issued bonds that pay semiannually with the following characteristics: ...

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Finance

Steel Pier Company has issued bonds that pay semiannually with the following characteristics:

Coupon

Yield to Maturity

Maturity

Macaulay Duration

10%

10%

10 years

6.76 years

If the yield to maturity decreases to 8.045%, the expected percentage change in the price of the bond using modified duration would be ________.

A) 11%

B) 13%

C) 12%

D) 10%

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