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Ch 5 12 12. Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond's

Ch 5 12 image text in transcribed
12. Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond's duration to estimate the percentage change in the bond's price for a decrease in the market interest rate to 3.5 percent. How different is your answer from the actual price change calculated using Equation 5.6

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