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) A 25 year bond pays 9% coupon and has face value of $100. Suppose the initial yield is 9% a) Calculate the price of

) A 25 year bond pays 9% coupon and has face value of $100. Suppose the initial yield is 9%

a) Calculate the price of the bond.

b) Approximate the price change due to duration of a change in yield to 7%.

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