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Question 2 Suppose a hypothetical bond is currently priced at $ 9 9 2 . Its Macauley duration is 1 2 . 3 4 years.

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Suppose a hypothetical bond is currently priced at $992. Its Macauley duration is 12.34 years. Yield-to-maturity is 6.15%. Interest is paid quarterly. If market interest rates increase by 15 basis points, estimate the new bond price. You may round to the nearest dollar. Show all formulas & calculations. Excel is optional. If you use Excel please include the spreadsheet.

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