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Consider a bond with annual coupon payments. Given a current price of 1,000, a Macaulay duration of mac 2.81, and a yield to maturity of

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Consider a bond with annual coupon payments. Given a current price of 1,000, a Macaulay duration of mac 2.81, and a yield to maturity of 7%, what is the estimated change in price due to duration for a 2.18 % change in interest rate? (Hint: Calculate the modified duration D mod first.]

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