Determine predicted price change on the bond
You own a bond that has a duration of 7 years. Interest rates are currently 6% but you believe the Fed is about to increase interest rates by 100 basis points. Your predicted price change on this bond is ________.
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Interest rates are currently 6% but you believe the Fed is about to increase interest rates by 100 basis points. Your predicted price change on this bond is ________.
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