Calculate an estimate of the percent price change

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A 6.8% coupon bearing bond that pays interest semi-annually has a yield to maturity of 4.5% per year. This bond has a duration of 17.3 years and a convexity of 113. If the market yield increases 35 basis points, calculate an estimate of the percent price change due to both duration and convexity. (Answer to the nearest hundredth of a percent, i.e. 1.23 but do not use the % sign).

Reference no: EM131176583

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