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Calculate the duration of $1,000, 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. Calculate the expected price

Calculate the duration of $1,000, 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Calculate the actual price change using discounted cash flow.

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