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  3. you find a bond with 28 years until maturity that

You find a bond with 28 years until maturity that has a coupon rate of...

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Finance

You find a bond with 28 years until maturity that has a coupon rate of 10.5 percent and a yield to maturity of 10 percent. Suppose the yield to maturity on the bond increases by 0.25 percent.

a. What is the new price of the bond using duration and using the bond pricing formula?

Estimated price: ?

b. Now suppose the original yield to maturity is increased by 1 percent. What is the new price of the bond?

Estimated Price: ?

Answer & Explanation Solved by verified expert
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