A 10-year $1000 par value, has a 5% coupon (paid semiannually) and a 6% Yield to Maturity (YTM). The bond has a 7.8-year duration. if rates are expected to increase from 6% to 9% over the coming year, based on the duration approximation, the expected price of the bond will be The actual price of the band at the new 9% YTM is O $1000 $715.326 underestimates O $721277 $721.277, correctly estimates. O$739.84 $715 326 underestimates O $715 326: $739.84, overestimates This example shows that duration price declines for large increases in

This ecample shows that duration price declines for large increases in meerst nan