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Krishna buys an n-year 1,000 bond at par. The Macaulay duration is 5.3 years using an annual effective interest rate of 3%.Calculate the estimated price

Krishna buys an n-year 1,000 bond at par. The Macaulay duration is 5.3 years using an annual effective interest rate of 3%.Calculate the estimated price of the bond, using first-order modified approximation, if the interest rate rises to 4.25%.

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