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Compute the duration and modified duration of a 6 year

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Reference no: EM132819887

Bond Duration

(a) Compute the duration and modified duration of a 6 year bond that makes annual payments with a coupon rate of 10% and a YTM of 9%.

(b) If interest rates FALL by 100 basis points, what is the dollar and percentage change in price?

(c)If interest rates RISE by 100 basis points, what is the dollar and percentage change in price?

Reference no: EM132819887

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