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Posted on Aug 05, 2024

Consider a $ 1 0 0 0 , 7 - yr , 5 . 5 % semiannual coupon bond with a price of $ 1

Consider a $

1000, 7 -

, 5.5 %

semiannual coupon bond with a price of $

1, 029.23 .

What is the approximate percentage change in bond price if interest rates increase

1 % ?

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