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Given the following information about a bond: Price Duration Convexity 110 10 200 (i) Approximate the price of the bond if the yield suddenly increases

Given the following information about a bond:

Price Duration Convexity

110 10 200

(i) Approximate the price of the bond if the yield suddenly increases 20 basis points. Report your answer to three decimal places.

(ii) Approximate the price of the bond if the yield suddenly decreases 20 basis points. Report your answer to three decimal places.

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