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Suppose a bond has 10 years to maturity, a coupon rate of 6%, and a face value of $100 selling at a 7% yield to

Suppose a bond has 10 years to maturity, a coupon rate of 6%, and a face value of $100 selling at a 7% yield to maturity where coupon payments are made every 6 months.

a) Use modified duration to approximate the change in price when yield to maturity decreases to 5%.

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