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Bond B has 7 years to maturity. It’s YTM right now is 5%. If the bond...

Bond B has 7 years to maturity. It’s YTM right now is 5%. If the bond has a Macaulay duration of 6.1 years and convexity of 25, what is the percentage change in the bond price if interest rates suddenly decrease by 1.1%? Assume annual compounding.

Group of answer choices

6.60%

-6.06%

-6.24%

6.54%

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