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A 5 year 8% coupon bond has a YTM or 7%, Macaulay duration of 4.3222, and convexity of 21.66. The bond's current price is $1045

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A 5 year 8% coupon bond has a YTM or 7%, Macaulay duration of 4.3222, and convexity of 21.66. The bond's current price is $1045 and YTM suddenly drops to 6%. 1) What will be the new price of the bond? 2) Using just duration, what would you estimate the new bond's price to be? 3) Using duration and convexity, what would you estimate the new bond's price to be

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