Solved: What is the expected change in the bonds value, Finance Basics

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What is the expected change in the bonds value

Problem:

A bank added a bond to its portfolio. The bond has a duration of 12.3 years and cost $1109. Just after buying the bond, the bank discovered that the market interest rates are expected to rise from 8% to 8.75%. What is the expected change in the bonds value?

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Finance Basics: What is the expected change in the bonds value

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