Calculate the bond current price

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Reference no: EM13280278

A $1,000 corporate bond has an 8% annual coupon with semi-annual payments and compounding, with 10 years to maturity. The current market for a similar bond is 7% annual yield for a bond with similar risks.

A) calculate the bond's current price.
B) calculate the bond price if the yield increases from 7% to 7.5% as well as the percentage change in price.
C) calculate the macaulay duration on the bond.

Reference no: EM13280278

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