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You own a bond that matures in 3 years. The bond has an 8.5% coupon rate, 6% yield, and pays annually. If interest rates were
You own a bond that matures in 3 years. The bond has an 8.5% coupon rate, 6% yield, and pays annually. If interest rates were to decrease by 15 basis points, use the duration model to estimate how much your bond will either increase or decrease.
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