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Consider a bond with face value $1,000, coupon rate 5.5% annual, maturity 4 years, YTM 2.75% annual, semiannual coupons. Calculate duration. Suppose the yield (APR)

Consider a bond with face value $1,000, coupon rate 5.5% annual, maturity 4 years, YTM 2.75% annual, semiannual coupons. Calculate duration. Suppose the yield (APR) decreases by 1.75%. Compare the exact percentage change in the price of the bond with the duration approximation.

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