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Reprice a bond three ways · Part 2 of 3
A three-year bond pays a 6% annual coupon on a face value of 100 and yields 5%, annually compounded. The yield then rises to 6%, and each part estimates the effect a little more accurately.
Using modified duration alone, estimate the bond price after the yield rises to 6%.
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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