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Compute the duration of a 30 year 9% bond, if yields to maturity are 6% presently. If rates drop by 1%, how much will the

Compute the duration of a 30 year 9% bond, if yields to maturity are 6% presently. If rates drop by 1%, how much will the price change? What if rates dropped by 2%? Which is more accurate? Why? Ascertain that you compute both the exact price and the approximate price by using duration.

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