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5) What is the duration of a 3-year $1,000 face bond that pays a 5%...

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5) What is the duration of a 3-year $1,000 face bond that pays a 5% coupon; and the current YTM is 4%? What happens to the value of the bond if rates move up to 5%? What is the new price of the bond at 5% YTM? What has happened to the bond's duration with the increase to 5% YTM? Face 1000 Years 3 Coupon 5%

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