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What happens to the price of the bond

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Question - The duration of a 10-year bond, with a coupon rate of 10% and a price of $1,000, is 6.76 years when the interest rate is 10% per annum. What happens to the price of the bond if the interest rate falls to 7.4% per annum? Based on the duration, the estimated new price will approximately be?

Reference no: EM133065694

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