A bond has just been issued. The bond has an annual coupon rate of 7% and coupons are paid annually.  The bond has a face value of $1,000 and will mature in 7 years.  The bond’s yield to maturity is 9%. Calculate the actual change in the bond’s price as the yield to maturity changes from 9% to 11%. Use the bond’s duration to calculate the approximate bond price change as the yield to maturity changes from 9% to 11%.

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