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A bond with an 8-year duration is priced at $1,087 and is selling to yield 8.7%. Assume the yield to maturity falls by 23 bps,

A bond with an 8-year duration is priced at $1,087 and is selling to yield 8.7%. Assume the yield to maturity falls by 23 bps, show the:

a) Formula used to obtain the new bond price.

b) Inputs into formula and Solution for BN.

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