A portfolio manager is considering the effect of a 75 basis


A portfolio manager is considering the effect of a 75 basis point cange of interest rate on a bond with Par = 1000, Price = $985 and Duration =4.8. The most appropriate price change would be

a. None of the alternatives
b. 4.8% of 1000
c. 4.8% of 985
d. 3.6% of 1000
e. 3.6% of 985

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Finance Basics: A portfolio manager is considering the effect of a 75 basis
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