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A bond portfolio manager gathered the following information about a bond issue: ...
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A bond portfolio manager gathered the following information about a bond issue: par value USD 9 mil, current value USD 9.5 mil, accounting value USD 9.05 and modified duration 5. If yields are expected to decline by 50 basis points, which of the following would provide the most appropriate estimate of the price change for the bond issue:
0%
0%
50%
0%
50%