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Suppose a default-free bond pays a monthly coupon. The coupon rate is 6%. The monthly yield to maturity of the bond is 0.4% and the

Suppose a default-free bond pays a monthly coupon. The coupon rate is 6%. The monthly yield to maturity of the bond is 0.4% and the bond has a maturity of 28 years. Its face value is $500. 



How does the bond price change if the monthly yield to maturity sud-denly (with 28 years remaining to maturity) increases to 0.7%?

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