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Suppose that at an interest rate of i = 10%, an asset has a price of P(i) = 1,008 and a modified duration of D

Suppose that at an interest rate of i = 10%, an asset has a price of P(i) = 1,008 and a modified duration of Dmod = 4.0. Using the first-order approximation of price using the modified duration to estimate the percent change in price if the interest rate changes to j = 11.1% . Hint: use the formula

=P=Dmodi

. Enter your answer to 3 decimal places. Your answer will be negative.

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