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A bond has a modified duration of 8 and price of 1 1 2 , 9 5 5 calculated using an annual effective interest rate

A bond has a modified duration of 8 and price of 112,955 calculated using
an annual effective interest rate of 6.4%. Find the difference of the estimated price of this
bond at an interest rate of 7.0% by using the first-order Macaulay approximation and by
using the first order modified approximation.

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