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Consider a 10 year bond with face value $1,000 thatpays a 6.8% coupon semi-annually and has a yield-to-maturity of 8.4%. What is the approximate percentage

Consider a 10 year bond with face value $1,000 thatpays a 6.8% coupon semi-annually and has a yield-to-maturity of 8.4%. What is the approximate percentage change in the price of bond if interest ratesin the economy areexpected to decreaseby 0.60% peryear?Submit your answer as a percentage and round to two decimal places. (Hint: What is the expected price of the bond before and after the change in interest rates?)

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(2) Apply the appropriate mathematical model to solve the problem.

(3) Calculate the correct solution to the problem.

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