bond price before change in interest rate
=(1000*8.4%/2)*((1-(1+(6.9%/2))^(-7*2))/(6.9%/2))+1000/(1+(6.9%/2))^(7*2)
=1082.18
bond price after change in interest rate
=(1000*8.4%/2)*((1-(1+(7.3%/2))^(-7*2))/(7.3%/2))+1000/(1+(7.3%/2))^(7*2)
=1059.46
percentage change
=1059.46/1082.18-1
=-2.10%
the above is answer..
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