An annual payment bond has a 9 percent required return. Interest rates are projected to fall 25 basis points. The bond's duration is 12 years. What is the predicted price change?
A)−2.75 percent
B)33.33 percent
C)1.95 percent
D)−1.95 percent
E)2.75 percent

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The Answer of An annual payment bond has a 9 percent required return. Interest rates are projected to fall 25 basis points. The bond's duration is 12 years. What is the predicted price change?
A)−2.75 percent
B)33.33 percent
C)1.95 percent
D)−1.95 percent
E)2.75 percent

An Annual Payment Bond Has a 9 Percent Required Return