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What is the bond price

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Reference no: EM132960023

Question - Assume that A six-year bond with a yield of 10% (continuously compounded) pays an 8% coupon at the end of each year.

(a) What is the bond's price?

(b) What is the bond's duration? What is the bond's modified duration?

(c) Use the duration to calculate the effect on the bond's price of a 0.15% decrease in its yield.

Reference no: EM132960023

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