Question: Consider a 3 year zero coupon bond with a par value of1000$ and selling for 816.30 $ to yield 7% (effective rate). What would be

Consider a 3 year zero coupon bond with a par value of1000$ and selling for 816.30 $ to yield 7% (effective rate). What would be the approximate percentage change (using only duration ) in the price of the bond if the interest rates decrease by 50bps ? Interest is capitalized on a semiannual basis

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