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Business, 19.06.2020 19:57 joselaboyNC16

Suppose a 6-year zero-coupon bond with a face value of $100 trades at $76.235. If the yield increases by 125 basis points, what is the magnitude of the error between the exact new bond price and the first-order approximation of the new bond price using the Modified Duration?

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Suppose a 6-year zero-coupon bond with a face value of $100 trades at $76.235. If the yield increase...
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