Compare to the original volatility calculated

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Calculate the duration and volatilities of 9% coupon, 5-year bonds, which yield is 8%. Then find the impact of a 0.5% increase and decrease in interest rates on the value of the bond (evaluate the bond at 8.5% and 9.5%). Use this to compute its volatility and compare to the original volatility calculated.

Reference no: EM133068499

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