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Consider a 2% coupon bond with 2 years to maturity and a face value of...

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Finance

Consider a 2% coupon bond with 2 years to maturity and a face value of $100. Assume the bond is trading at a yield of 5%. Approximate the percentage change in price using duration if yield goes down by 45 basis points. Coupons are paid semi-annually. Assume semi-annual compounding.

Express your answer in basis points, and round to two decimal places. If your answer is a price decline, then include the negative sign in your answer.

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