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Estimate the change expected in the bond price

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Reference no: EM132756873

Question - Given a bond with six-monthly coupons of 6% per annum and two years to maturity. The investment face value is $1,000 and the yield to maturity is 9% per annum.

i) Calculate the duration of the bond.

ii) Use the duration measure to estimate the change expected in the bond price if the yield changes to 8% per annum.

Reference no: EM132756873

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