Calculate bond modified duration

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Calculate the duration of an 8 percent, $1000 par bond that matures in three years if the bond's YTM is 10 percent and interest is paid semiannually.

A. Calculate this bond's modified duration.

B. assuming the bond's YTM goes from 10 percent to 9.5 percent, calculate an estimate of the price change.

Reference no: EM131954615

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