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4. A bond has 3 years to maturity, 6% coupon, 8% yield, and pays annually. If the yield increases by 15 basis points, estimate how

4. A bond has 3 years to maturity, 6% coupon, 8% yield, and pays annually. If the yield increases by 15 basis points, estimate how much the bond price would increase or decrease using the duration model. Ans: -3.73

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