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A bond has a duration of 6 years. The coupon rate on the bond is 3.5%. Coupons are paid semi-annually. The bond trades at a
A bond has a duration of 6 years. The coupon rate on the bond is 3.5%. Coupons are paid semi-annually. The bond trades at a price in dollars of 1,050. If market yields decline 75 bps, what is the best estimate of the new bond price? You can ignore convexity.
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