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A 4-year zero-coupon bond with face value $100 sells for $80.00. What is the modified duration of the 4-year zero? What is the predicted dollar
A 4-year zero-coupon bond with face value $100 sells for $80.00. What is the modified duration of the 4-year zero? What is the predicted dollar price change of the 4-year zero using the duration approximation, assuming that the yield to maturity increases by 1%? How does it compare with the actual change in price
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