Using duration and convexity approximation, compute the percentage price change on a 10-year fixed coupon bond, if the interest rate increases by 1%. The modified duration of the bond is 6 years, and convexity is 200 year2.   Group of answer choices   -6%   -5%   7%   -7%

Essentials Of Investments
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Using duration and convexity approximation, compute the percentage price change on a 10-year fixed coupon bond, if the interest rate increases by 1%. The modified duration of the bond is 6 years, and convexity is 200 year2.
 
Group of answer choices
 
-6%
 
-5%
 
7%
 
-7%
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