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A bond with a coupon of 11.5% and 10 years remaining until maturity has a modified...

A bond with a coupon of 11.5% and 10 years remaining until maturity has a modified duration of 6.48 and convexity of 63. The bond is quoted at $115.75. If the required yield rises by 145 basis points, determine the predicted price of the bond. Please show work!

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ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

1. predicted price of the bond= $1056.41

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