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When the market interest rate was 6%, you purchased a 10-year, 8% (twice a year coupon payments) bond with a Macaulay duration of 7.29 years.
When the market interest rate was 6%, you purchased a 10-year, 8% (twice a year coupon payments) bond with a Macaulay duration of 7.29 years. The par value of this bond is $1,000. If the market interest rate decreased by 50 basis points from the previous level, what is the % change in the bonds price using the duration concept?
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