Calculate its dollar duration

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A bond has a Macauley's Duration of 5.5 years, a yield of 6%, and a full price (price plus accrued interest) of 95.50. It pays coupons semiannually.

(a) Calculate its modified duration.

(b) Calculate its dollar duration.

(c) By approximately how much will the price change if its yield decreases to 5.8%? Ignore convexity effects.

Reference no: EM131964138

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