Estimate the new price of the bond

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Reference no: EM131554047

Consider a 5.8 percent coupon bond with eleven years to maturity and a current price of $1,060.10. Suppose the yield on the bond suddenly increases by 2 percent. a.

Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Calculate the new bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131554047

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