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Using the information in numbers (4-6) above, estimate the price change and new price for each bond using duration assuming interest rates increase by 2%.
Using the information in numbers (4-6) above, estimate the price change and new price for each bond using duration assuming interest rates increase by 2%.
| Bond | Coupon | Required Return | Time to Maturity | Duration | Estimated Price Change | Estimated New Price |
| 11 | 10% | 15% | 3 | |||
| 12 | 10% | 15% | 5 | |||
| 13 | 10% | 15% | 7 |
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
