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Assume the we have a long position in the following bond: $1,000,000 par value 12 years until maturity 3.5% coupon is 97.500 (i.e., 97.500% of
Assume the we have a long position in the following bond:
$1,000,000 par value
12 years until maturity
3.5% coupon is 97.500 (i.e., 97.500% of par value)
Under the assumption that the appropriate yield on this bond declines by 70 bps, what will be the new price?
1. Confirm AMD=
Confirm AC=
Confirm % price change =
Confirm New Price =
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