Approximate percentage change in a financial asset's price equals what?

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The approximate percentage change in a financial asset's price can be calculated using the formula: Approximate percentage change = -Duration x (Yield change in decimal form) x 100. This formula is based on the concept of duration, which measures the sensitivity of a financial asset's price to changes in interest rates. By multiplying duration by the yield change in decimal form and 100, we can estimate the percentage change in the asset's price. The negative sign indicates an inverse relationship between the price and the yield.

Approximate Percentage Change in a Financial Asset's Price Equals What