What is the new price of the bond using duration

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You find a bond with 15 years until maturity that has a coupon rate of 8.0 percent and a yield to maturity of 7.1 percent. Suppose the yield to maturity on the bond increases by .25 percent. 1. What is the new price of the bond using duration? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Estimated price $ Actual price $ 2. What is the new price of the bond if interest rates increase by 1 percent? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Estimated price $ Actual price $

Reference no: EM131025512

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