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Problem 8 (10 points): Using Modified duration, what is the expected percentage change in bond price given a five basis point increase in the bond
Problem 8 (10 points): Using Modified duration, what is the expected percentage change in bond price given a five basis point increase in the bond yield? \begin{tabular}{l|l|} Answer: & (x.xxxxx\%) \end{tabular} Using Modified duration and convexity, what is the expected percentage change in bond price given a five basis point increase in the bond yield? Answer: (x.xxxxx\%)
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