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1. A bond has a price of 1213.50 and a modified duration of 10.3 calculated using an annual effective interest rate of 8%. The first-order

1. A bond has a price of 1213.50 and a modified duration of 10.3 calculated using an annual effective interest rate of 8%. The first-order Macaulay approximation for the price of the bond is EMac at an interest rate of 7.3%. The first-order modified approximation for the price of the bond is EMod at an interest rate of 7.3%. Calculate EMacEMod. A 1.79 B 3.43 C 3.54 D 9.86 E 10.02

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