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sir in macaulay’s duration is we have been told that interest rates fall by 0.5% from 9.5%, say. and modified duration has been calculated 3.754. bond price before fall was 1200USD and face value is 1000USD. then, the change in bond price will be calculated as follows?
1200×3.754×0.5%/1.09=20.66USD, giving us bond price of 1220.66USD right?
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