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Bond X has a Macaulay duration of 5 years and a yield of 6 percent assuming coupon payment is made annually and coupon rate of

Bond X has a Macaulay duration of 5 years and a yield of 6 percent assuming coupon payment is made annually and coupon rate of 2 percent. Calculate the Modified duration of Bond X.

If interest rate is expected to increase by 25 basis points (100 basis points is equivalent to 1%).

What is the percentage change in the price of Bond X? .

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