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Calculate the approximate dollar change

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A bond with face value = 7,000 currently trades at par. Its Macaulay duration is 6 years and its convexity is 63.15 in years.

Suppose yield currently is 3.06%, and is expected to change to 3.54%. Calculate the approximate dollar change in price using both duration and convexity.

Assume annual compounding. Round your answer to 2 decimal places. If your answer is a price decline, then please include the negative sign in your answer.

Reference no: EM132711594

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