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Q11. Consider a discount bond with a principal payment of $1,000 in 8 years and...

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Q11. Consider a discount bond with a principal payment of $1,000 in 8 years and a price of $935. Assume that the yield curve is a flat 10.7%. What's the unanticipated return of the bond if interest rate decreases by 0.25% using only duration? A. 1.81% B. 1.91% C. 2.01% D. 2.08% E. 2.25%

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