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Emily buys an n-year 1000 bond at par. The Macaulay duration is 5.8 years using an annual effective interest rate of 4.2%. Calculate the estimated

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Emily buys an n-year 1000 bond at par. The Macaulay duration is 5.8 years using an annual effective interest rate of 4.2%. Calculate the estimated price of the bond, using the first-order modified approximation (i.e. the duration-based method emphasised in the text and in the lectures), if the interest rate rises to 4.5%

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