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You have a 25-year maturity, 10% coupon, 10%-yield bond with a duration of 10 years and a convexity of 120. If the interest rate were
You have a 25-year maturity, 10% coupon, 10%-yield bond with a duration of 10 years and a convexity of 120. If the interest rate were to fall 125 basis points, what is your predicted new price for the bond (including convexity)?
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