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The duration of a 20-year 8 percent coupon bond (paid annually) selling at par is 10.50 years. The face value of the bond is $1000.

The duration of a 20-year 8 percent coupon bond (paid annually) selling at par is 10.50 years. The face value of the bond is $1000. What is the price change of the bond if interest rate increases by 100 basis points? Please use the duration formula to estimate the price change. The current interest rate =8%.

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