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Consider a bond with a face value of $200. Suppose this bond pays annual coupon for 7 years at 5%. Assume a yield to maturity of 7%.

At what price should this bond be sold

Calculate the duration for this bond and the modified duration.

What do you expect to the duration if the coupon payments increase to 9%?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92670845

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