Bond with three years remaining to maturity

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Reference no: EM131835535

A bond with 3 years remaining to maturity has an annual coupon rate of 6.0%, and a face value of $1,000. Assume the yield to maturity is 7.20% and answer the questions below. A) What is the duration of this bond? B) if the interest rates rise 0.28% from the given YTM, by what percent will the bond change in value? (show using modified duration and capital gains formula)

Reference no: EM131835535

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