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Estimate the price impact of a 50-basis point interest ratechange using a linear approximation of a 10-year 7% semi-annualcoupon bond priced at 97.50. a. 1.72

Estimate the price impact of a 50-basis point interest ratechange using a linear approximation of a 10-year 7% semi-annualcoupon bond priced at 97.50.

a. 1.72

b. 3.40

c. 3.44

d. 6.80

e. 6.88

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