Question

A Debenture of face value of Rs.500 is currently quoting at Rs.530. The duration of the debenture is 3 years. The market interest rates moved from 4.5% to 5.5%. What would be the new price of the debenture?

A Rs.530.0
B Rs.514.1
C Rs.545.9
D Rs.515.0
E Rs.485.0
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