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(e) Based on part (d), if the nominal rate of interest increases from 5% to 5.1% (convertible monthly), find the new loan amount's (i) exact

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(e) Based on part (d), if the nominal rate of interest increases from 5% to 5.1% (convertible monthly), find the new loan amount's (i) exact answer. (1 mark) (ii) approximation using the modified duration obtained in (d)(ii). (1 mark) (iii) approximation using the modified duration and the convexity obtained in (d)(ii) and (d)(iv). (1 mark) (e) Based on part (d), if the nominal rate of interest increases from 5% to 5.1% (convertible monthly), find the new loan amount's (i) exact answer. (1 mark) (ii) approximation using the modified duration obtained in (d)(ii). (1 mark) (iii) approximation using the modified duration and the convexity obtained in (d)(ii) and (d)(iv). (1 mark)

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