Consider a bond with a modified duration (in years) of 3.2. Coupon rate and yield to maturity are the same. Par value is $1,000. Estimate the percentage change in price for a 200 basis-point increase in interest rates. A. 5.4% OB. -6.4% OC. .8.6% OD. -4.8%

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Q: Consider a bond with a modified duration (in years) of 3.2. Coupon rate and yield to maturity are…

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