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What is the percentage change in price for a zero coupon bond if the yield changes from 8.5% to 7.5%? The bond has a face

What is the percentage change in price for a zero coupon bond if the yield changes from

8.5%

to

7.5%?

The bond has a face value of

$1,000

and it matures in

16

years. Use the price determined from the first yield,

8.5%,

as the base in the percentage calculation.

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