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Calculate the duration of a $1,000 face value 6% 3-year bond with a yield to maturity of 6.5%. A. With this duration, calculate the approximate

Calculate the duration of a $1,000 face value 6% 3-year bond with a yield to maturity of 6.5%. A. With this duration, calculate the approximate change in price resulting from a 1% drop in the yield to maturity. B. Does the calculation overstate, understate, or accurately reflect the change in the price of the bond?

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