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  3. 1. calculate the macaulay duration of a 4-year bon

1. Calculate the Macaulay duration of a 4-year bond with a 7% semi-annual coupon that...

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1. Calculate the Macaulay duration of a 4-year bond with a 7% semi-annual coupon that is yielding 4%. 2. Set the holding period equal to duration. 3. Calculate the holding period return if the yield increases from 4% to 4.2% immediately after you have purchased the bond, assuming the yield remains at 4.2% for the remainder of the holding period. 4. Repeat the exercise if the yield decreased from 4% to 3.8%. Q: What is the holding period return for the investor in both cases? Enter 5% as 5

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