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) -0.750 percent
B) +0.750 percent
C) +12.675 percent
D) -12.675 percent
Correct Answer:
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