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A bond has a price of 101 (percent of par), its yield-to-maturity is 7%, and its modified duration is 8. Use the modified-duration to estimate

A bond has a price of 101 (percent of par), its yield-to-maturity is 7%, and its modified duration is 8. Use the modified-duration to estimate the new price of the bond if yields

a. increase by 0.25%

b. decrease by 0.25%

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