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The following three questions refer to the following information: Calculate the price of a $1,000, 3% bond with 3 years to maturity with 4.5% market

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The following three questions refer to the following information: Calculate the price of a $1,000, 3% bond with 3 years to maturity with 4.5% market interest rates. What is the duration of this bond? Calculate the expected price change in $s if interest rates fall to 4.05% using the duration price approximation formula

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