Suppose that if the yield increases by 25 basis points the


A bond currently sells for $1,200, which gives it a yield to maturity of 8%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,155. What is the duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

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Financial Management: Suppose that if the yield increases by 25 basis points the
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