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5. A bond has a price of 101 (percent of par), its yield-to-maturity is 7%, and its modified duration is 8. Use the modified-duration

5. A bond has a price of 101 (percent of par), its yield-to-maturity is 7%, and its modified duration is 8. Use the modified-duration to estimate the new price of the bond if yields a. increase by 0.25% (5 points) b. decrease by 0.25% (5 points) A. B.

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