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Compute the current bond price

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Reference no: EM133118876

Bond A is a 4% coupon (paid semi-annually) with 5 years to maturity and $100 face value per contract. The yield curve is flat at 6% per annum.

(i) Compute the current bond price.

(ii) Compute the bond's Macaulay Duration.

(iii) Compute the bond's Modified Duration.

Reference no: EM133118876

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