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QUESTION 15 A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end

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QUESTION 15 A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end of each year. Use the duration from the previous question to calculate the effect on the bond's price of a 0.1% decrease in its yield. What is the new bond price? (Remember if the yield goes down what happens to the the bond price?)

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