In: Finance
A 6% coupon bond paying interest semi-annually has a modified duration of 11 years, sells for $850, and is priced at a yield to maturity (YTM) of 6.90%. If the YTM increases to 7.65%, the price, using the concept of duration, is predicted to:
Group of answer choices
decrease by $67.54
decrease by $72.54
decrease by $70.13
decrease by $67.79
decrease by $65.60