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What is the estimated price change, as a percentage, for this bond if the market interest rate declined by 20bp? (Round your answer to 2 decimal places, use a negative sign for price decrease. If your answer was a price decrease of a tenth of a percent, enter -0.10)

(Hint, first calculate modified duration)

2 year bond with annual payments

Par value $1000

10% coupon

9% discount rate

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91785141

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