How we can improve on duration estimate for percent change, Finance Basics

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How we can improve on duration estimate for percent change

Problem

Consider the 30-year bond in question 3 and the convexity result for the bond in question 5. Use a Taylor series to show how we can improve on the duration estimate for the percent change in the price of this 30-year bond if the yield is increased by 100 basis points. Explain your answer clearly and add comments where appropriate.

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