Calculate the approximate price change for this bond

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1. Assume that a 7 percent, 8-year bond has a Macaulay duration of 5.6 years and a YTM of 6.5 percent. Calculate the approximate price change for this bond if interest rates decline 110 basis points.

2. If government implementing user fee for co payMedicaid recipient what are advantages and disadvantages

3. The T-bill rate is 4%, and the expected return on the market risk premium is 8%.  Your company is considering an investment with a beta of .75 offers an expected return of 10.0%.

Does this project have a positive NPV? SHOW ALL WORK

A. YES

B. NO

Reference no: EM131898705

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