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Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield increase by 10 basis point. a. Duration

Compute the approximate percentage price change using duration for the two 8% coupon bonds assuming that the yield increase by 10 basis point.

a. Duration for 8% 4-year bond=3.44 b. Duration for 8% 25-year bond=12.94

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