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Suppose we have a 1-year zero coupon bond that has a YTM equals 5%. Now...

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Finance

Suppose we have a 1-year zero coupon bond that has a YTM equals 5%. Now if interest rate increases by 50 basis points, what is the percentage change of bond price?

0.47%

-0.47%

0.50%

-0.50%

Answer & Explanation Solved by verified expert
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