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Consider a bond with a 5% coupon rate, an 8% yield to maturity and a $1000 par value. The bond matures in 2 years. Assume

Consider a bond with a 5% coupon rate, an 8% yield to maturity and a $1000 par value. The bond matures in 2 years. Assume semi-annual payments. Answer the following questions.

(a)When should we use the approximate duration measure?

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