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An investment has cashflows of 75, 100, and 125 at the end of year 1, 2...

  1. An investment has cashflows of 75, 100, and 125 at the end of year 1, 2 and 3 respectively. Assume the project’s NPV is $260 and Mac Duration is 2.124 years, using duration, calculate the estimate NPV change when YTM decreases by 25 bps, to the nearest cents.

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