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Suppose you buy a 20-year pure discount bond with a face value of $1,000 and a yield of 7% per year. A day later, market

Suppose you buy a 20-year pure discount bond with a face value of $1,000 and a yield of 7% per year. A day later, market interest rates rise to 8% and so does the yield of your bond.
1. What is the proportional change in the price of your bond?
2. What is the elasticity of the bond price to the change in the yield?

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