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How different is your answer from the actual price change

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Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond"s duration to estimate the percentage change in the bond"s price for a decrease in the market interest rate to 3.5 percent. How different is your answer from the actual price change calculate?

Reference no: EM13321257

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