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What would be the percentage change

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Reference no: EM131721487

A 10-year bond has a 10 percent coupon rate. The YTM is also 10 percent and interest is paid annually. 

Calculate:  

1. Macaulay's Duration 

2. Modified Duration 

3. What would be the percentage change in the price of the bond if the interest rate increases by 2 percent.

Reference no: EM131721487

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