Question: How will a 0 . 5 % decrease in the yield to maturity ( YTM ) affect the price of a ten - year bond

How will a 0.5% decrease in the yield to maturity (YTM) affect the price of a ten-year bond with a current YTM of 6.5% and an annual coupon rate of 5.2%? The bond's current price is $975.20, and its duration is 7.8. Calculate the new bond price after the decrease in YTM.

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