A bank owns a zero coupon bond with 5 years to maturity and a face value of $10,000.If interest rates increase from 6% to 7%, what is the approximate change in price, using Macaulay's duration?
A) $343
B) $352
C) -$343
D) -$352
E) not enough information is given to answer the question.
Correct Answer:
Verified
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