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3. What is the percentage change in price for a zero coupon bond if the yield changes from 9% to 6%? The bond has a

3. What is the percentage change in price for a zero coupon bond if the yield changes from

9%

to

6%?

The bond has a face value of

$1,000

and it matures in

16

years. Use the price determined from the first yield,

9%,

as the base in the percentage calculation.

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