Now suppose you want to measure the impact of a change in the prevailing bond...

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Finance

Now suppose you want to measure the impact of a change in the prevailing bond yields on bond prices. If the duration of a bond is 2.759 years and the prevailing bond yield is 11 percent, then the bonds modified duration is:

2.039 years

2.262 years

2.486 years

2.610 years

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