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Calculate the expected price change if interest rates drop

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Reference no: EM131127209

Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Calculate the actual price change using discounted cash flow.

Reference no: EM131127209

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Calculate the expected price change if interest rates drop : Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Calculate the actual price change using discounted cash flow.
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