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1. An investor buys a three-year bond with a 5% coupon rate paid annually. The bond, with a yield-tomaturity of 3%, is purchased at a

1. An investor buys a three-year bond with a 5% coupon rate paid annually. The bond, with a yield-tomaturity of 3%, is purchased at a price of 105.657223 per 100 of par value. Assuming a 5bp change in yield-to-maturity, what is the bonds approximate modified duration? What is the Macaulay duration of the bond?

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