Question: A bond currently sells for $ 9 5 0 based on a par value of $ 1 , 0 0 0 and promises $ 1

A bond currently sells for $950 based on a par value of $1,000 and promises $100 in interest for three years before being retired. Yields to maturity on comparable-quality securities are currently at 12 percent. What is the bond's duration? Suppose interest rates in the market fall to 10 percent. What will be the approximate percent change in the bond's price?

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