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A semiannual government bond has a yield of 6%. The duration is 3 years and 6 months. The Fed decreases its yield by 20 bps.

A semiannual government bond has a yield of 6%. The duration is 3 years and 6 months. The Fed decreases its yield by 20 bps. What is the change in price of this bond as a fraction of its initial price?

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