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bond at par. The Macaulay duration is 7.959 Calculate the estimated price of the bond, using the fint-order modified approximation, if the interest rate rises

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bond at par. The Macaulay duration is 7.959 Calculate the estimated price of the bond, using the fint-order modified approximation, if the interest rate rises to 8.0%. [SOA 51: SOA- T:066 ] Krishna buys an n-year 1000 bond at par. The Macaulay duration is 7.959 years using an anunal effective interest rate of 7.2%. Calentate the estimated price of the boud, using the first-order modified approximation, if the intereat rate rises to 8.0%

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