A bond has a YTM of 6.5%, a modified duration of 16.9 years, a duration of 18 years and a 30 year maturity. By what percentage will the bond's price change if market interest rates increase by 0.75%?
A) +12.675 percent.
B) - 12.675 percent.
C) +0.750 percent.
D) - 0.750 percent.
Correct Answer:
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