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Using modified duration. calculate % change in price of the two bonds if the yield goes down by 10 basis point. Bond A Bond B

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Using modified duration. calculate % change in price of the two bonds if the yield goes down by 10 basis point.

Bond A Bond B 6% 7% Coupon Yield to maturity Maturity (years) 6% 6% 2 5 Par $100.00 $100.00 $104.265 Price $100.00

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