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Q2 (c) A US Treasury Bond has 4-years to maturity, 3.2% coupon rate, pays semi-annual. Bonds of a similar credit quality are trading on a

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Q2 (c) A US Treasury Bond has 4-years to maturity, 3.2% coupon rate, pays semi-annual. Bonds of a similar credit quality are trading on a yield of 1.2% in the market. For a nominal $100, calculate how much the price of this bond might change if the market yield rose by 0.25% (8 marks)

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