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Hey there, could you please provide the answers with workings shown. Thank you! ...

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Hey there, could you please provide the answers with workings shown. Thank you!

14. Consider a one and half year bond with face value of $1,000. The coupon rate is 5%. The bond's yield to maturity is 5%. The coupon is paid semi-annually. a) Calculate the modified duration of this bond. (5 marks) b) Use the duration rule to estimate the price change in percentage when the yield to maturity decreases from 5% to 4%

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