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An investor bought a bond two years ago at its face value of 2 0 0 0 euros. The bond has a duration of 1

An investor bought a bond two years ago at its face value of

2000

euros. The bond has a duration of

15

years and an interest rate of

10 % .

Coupons and compound interest are paid quarterly. Now that interest rates have dropped and new securities with the same characteristics yield

8 %,

the investor wants to sell the bond. At what price should the bond be sold?

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