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Consider a 15-year zero coupon bond with an 8% YTM. (1) What is the bonds modified duration? (2) What is the relative price change if

Consider a 15-year zero coupon bond with an 8% YTM.

(1) What is the bonds modified duration?

(2) What is the relative price change if the yield decreases by 1%?

(3) If the initial bond price is $308.32, based on only duration, estimate the new bond price after 1% YTM decrease.

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