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30 points) You know the yield to maturity is 10% for a two year 5% coupon bond with principal $1,000. The spot rates are 7%

30 points) You know the yield to maturity is 10% for a two year 5% coupon bond with principal $1,000. The spot rates are 7% and 12%. Show what the new price of the bond is if the yield increases by 1%.

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