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A Bond has a price determined by interest rates and time to maturity by the following: You know that the maturity is 8 . 9
A Bond has a price
determined by interest rates
and time to maturity
by the following:
You know that the maturity is years, but unfortunately you forgot the exact interest rate. You think it is but you are not sure. However, you feel confident that the is not off by more than
What is your absolute percent error in the bond price?
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