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a . What will be the estimated bond price volatility using duration based estimation formula, if interest rates decrease 0 . 7 5 % ?

a. What will be the estimated bond price volatility using duration based estimation formula, if interest rates decrease 0.75%?(4 points)
b. What will be the bond price volatility using bond price volatility equation, if interest rates decrease 0.75%? Compare the result with the estimated percentage change in the bond price in part a.

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