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Calculate the modified duration of bond

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Reference no: EM132657558

A two-year 8% coupon bond that makes annual coupon payments has a face value of 100$ and an (annual) yield to maturity of 3%.

a. What is the price of the bond?

b. How would the price of the bond change if the yield went up to 8%?

Calculate the modified duration of this bond when the yield is 3%.

Reference no: EM132657558

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