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  3. 4. the current market interest rate is an annual e

4. The current market interest rate is an annual effective rate of 6%. A non-callable...

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4. The current market interest rate is an annual effective rate of 6%. A non-callable bond has a current price of S1,150.00. If market interest rates decrease to 5.5% then the new market price for the bond will be $1,197.16. Use the first-order Macaulay approximation to estimate the Macaulay duration of the bond at an annual effective rate of 6%

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