3. [10 points] Using the modified duration you just calculated, (a) estimate what the price change of the bond would be if the U.S. Treasury yield declines 50 basis points. (b) Now calculate the new price. Do these calculations on paper

3. [10 points] Using the modified duration you just calculated, (a) estimate what the price change of the bond would be if the U.S. Treasury yield declines 50 basis points. (b) Now calculate the new price. Do these calculations on paper

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