Question: 3 . A 2 0 - year maturity, 1 0 % semiannual coupon, has a yield of 4 % . If the interest rate were

3. A 20-year maturity, 10% semiannual coupon, has a yield of 4%. If the interest rate were to fall 125 basis points, what is your predicted new price for the bond (including convexity)?(2 points)

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