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Percentage change in the bond price

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A bond is 1.5 years from maturity, has a 4% coupon rate, 5% yield, and pays semiannually. If the yield decreases by 70 basis points, estimate the percentage change in the bond price using the duration model. Hint: Your answer should expressed as a rate, remember not to use the percentage symbol in your answer.

Reference no: EM132503916

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