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QUESTION 1 Using the following formula dP -1 dR(1+R) *D*P With dP: Change in the Present Value of the bond dR: Change in the Rate

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QUESTION 1 Using the following formula dP -1 dR(1+R) *D*P With dP: Change in the Present Value of the bond dR: Change in the Rate R: Initial rate D: Duration of the Bond P: Initial Present Value of the Bond Calculate the Change in the Rate of a Bond, if the Price of the bond increases ir 12. dP= 12 R = 15% D-6 Years P= 1045

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