medium · CFA Level I Fixed Income
A 10-year, 4% annual coupon bond is priced at 92.50 to yield 5.00%. If the yield increases by 50 basis points, the bond's price falls to 89.10. If the yield decreases by 50 basis points, the price rises to 96.10.
The bond's approximate modified duration is closest to:
- 7.57
- 8.11
- 3.78
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