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A bond has a Macaulay's duration of 8.95 years. Current interest rates are 9.74%. If rates fall by 0.22%, according to duration what will be
A bond has a Macaulay's duration of 8.95 years. Current interest rates are 9.74%. If rates fall by 0.22%, according to duration what will be the approximate percentage change in the bond's price? Assume annual compounding. Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
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