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Consider a 10% annual coupon bond with three years of remaining maturity and a current YTM of 12%. Calculate the duration and convex its of

Consider a 10% annual coupon bond with three years of remaining maturity and a current YTM of 12%. Calculate the duration and convex its of this bond. If rates are expected to decline 2 percentage points use the convexity approximation to estimate the percentage change be in price for the bond.

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