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A . Calculate the actual price of the bonds for a 1 0 0 basis point increase in interest rates B . Using duration, estimate

.

Calculate the actual price of the bonds for a

100

basis point increase in interest rates

.

Using duration, estimate the price of the bonds for a

100

basis point increase in interest rates

.

Using duration and convexity measures, estimate the price of the bonds for a

100 -

basis point increase in interest rates.

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