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find out the duration of a bond that matures exactly in 5 years. Par value is $1000, coupon rate is 10% (annual). It has a YTM of 6%.

a. What will be the selling price?

b. What is the Duration of this bond?

c. If YTM were to be 12%, will the duration increase or decrease or stay the same? Give your reasoning.

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  • Reference No.:- M942817

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