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You are interested in a bond that pays an annual coupon of 5 percent. The...

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Finance

You are interested in a bond that pays an annual coupon of 5 percent. The bond has a par value of $1 ,000 and 2 years to maturity. Suppose that the bond has a yield to maturity of 3 percent. If the yield to maturity changes to 2.25 percent, how much should be the percentage price change of the bond based on its modified duration?

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