Question: Consider a 10-year zero coupon bond with an annual yield of 6% (assume semi-annual compounding). Assume the modified duration is 9.71 and the convexity of

Consider a 10-year zero coupon bond with an annual yield of 6% (assume semi-annual compounding). Assume the modified duration is 9.71 and the convexity of the bond is 98.97. If the annual yield changes to 7%, what is the approximated percentage price change?

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