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you gathered the issuance information on a bond: face value = 2 , 0 0 0 USD, coupon rate = 6 % , and time

you gathered the issuance information on a bond: face value

= 2, 000

USD, coupon rate

= 6 %,

and time to maturity

= 5

years, market interest is

8 % .

What is the price change if market rate drops by

1 %,

using modified duration to approximate it

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