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The yield of a bond is expressed as a rate that is compounded twice per year, and the bond's modified duration is 8 . The

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The yield of a bond is expressed as a rate that is compounded twice per year, and the bond's modified duration is 8 . The price of the bond is $98. Estimate the new price of the bond if the yield decreases from 7% to 5.5%. Hint: Check Example 7.2.4 and notice that in Formula 7.2.3 the "DM" is for the modified duration

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