Calculate the bonds macaulays duration

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You own a corporate bond that carries a 5.8 percent coupon rate and pays $ 10,000 at maturity in exactly two years. The current market yield on the bond is 6.1 percent. Coupon interest is paid semiannually and the market price is $ 9,944.32.

a. Calculate the bond's Macaulay's duration and modified duration.

b. If the market rate falls by 1 percent, what is the estimated impact on the bond's price?

Reference no: EM13884945

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