Bond modified duration

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Consider a 30-year $1,000 face bond with a coupon rate of 2.5%, a ytm of 3%, and a price of 925.21. The bond pays coupons semi-annually and has a duration of 15.66 years. 

1) What is this bond's modified duration? Now suppose the bond's ytm increases to 4%. 

2) Using modified duration, approximately what will be the bond's new price?

Reference no: EM132341494

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