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Krishna buys an n-year 1000 bond at par. The Macaulay duration is 7.959 using an annual effective interest rate of 5.2%. Calculate the estimated price

Krishna buys an n-year 1000 bond at par. The Macaulay duration is 7.959 using an annual effective interest rate of 5.2%. Calculate the estimated price of the bond, using the first-order Macaulay approximation, if the interest rate rises to 5.5%.

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