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1. A government bond currently carries a YTM of 6% and a market price of $1,098. If the bond pays an annual coupon of 8%

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1. A government bond currently carries a YTM of 6% and a market price of $1,098. If the bond pays an annual coupon of 8% for 3 years, a. What is its duration? b. What happens to its price if the interest rates increases from 6% to 9%? 2. Compare and contrast Forwards with Futures

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