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Consider a zero-coupon bond with nominal value of $100 and annual yield of 5%. It also has one year to maturity. You believe that after

Consider a zero-coupon bond with nominal value of $100 and annual yield of 5%. It also has one year to maturity. You believe that after one week the yield will change from 5% to 5.5%. Approximate the expected change in the bond price by using the Macaulay duration and convexity.

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