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12. A 10-year bond priced to have an annual effective yield of 6% has a Macaulay duration of 8. Immediately after the bond is priced,

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12. A 10-year bond priced to have an annual effective yield of 6% has a Macaulay duration of 8. Immediately after the bond is priced, the market yield rate increases by 0.5%. Calculate the bond's approximate percentage price change a. using a first-order Macaulay approximation. b. using a first-order modified approximation

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