Question: A zero coupon bond (1,000 face value) with 7 years to maturity has a yield to maturity of 7.86%. If the yield on the bond

A zero coupon bond (1,000 face value) with 7 years to maturity has a yield to maturity of 7.86%. If the yield on the bond decreases by 2%, what is the percentage change in the bond price? (Express your solution as a decimal with four digits of accuracy.)

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