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Consider a 6% coupon bond making annual paymen tsif it has 3 years until maturity and has a yield to maturity of 8%. (show work)

a) What is the duration of this bond?

b) If the market yield increases by 80 basis points, what is the actual percentage change in the bond’s price?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91792989

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