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A bond is scheduled to mature in five years. Its coupon rate is 9 percent with interest paid annually. This $1,000 par value bond carries
A bond is scheduled to mature in five years. Its coupon rate is 9 percent with interest paid annually. This $1,000 par value bond carries a yield to maturity of 10 percent. The duration for this bond is -4.223. Calculate the percentage change in this bond's price if interest rates on comparable risk securities decline to 7.58 percent. Use the duration valuation equation.
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