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The Duration measure can be used to calculate the approximate rate of change of a bond price with respect to yield changes. i. Write down

The Duration measure can be used to calculate the approximate rate of change of a bond price with respect to yield changes. i. Write down the duration approximation to the bond price change. ii. What assumptions are required for this approximation to work well? iii. What extra term can be added to improve the approximation? iv. Which Greek letter from your options class is this extra term related to? Give an explanation

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