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A 3-year 10% annual coupon bond yields 5%. The dollar price for the face value of $1000 is $1,136.1624. The Macaulay duration of the bond
A 3-year 10% annual coupon bond yields 5%. The dollar price for the face value of $1000 is $1,136.1624. The Macaulay duration of the bond is 2.7525.
The Modified Duration of the bond is equal to: 2.6214. years (4 decimals)
if the yield to maturity increases 50 bp = 0.5%, then according to the (mod) duration approximation, the price of the bond will change to: $___
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