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1. Consider a bond that has a coupon rate of 7%, three years to maturity, and is currently priced to yield 5%. Calculate the following:
1. Consider a bond that has a coupon rate of 7%, three years to maturity, and is currently priced to yield 5%. Calculate the following:
a. Macauley duration
b. Modified duration
c. Effective duration
d. Percentage change in price for a 1% increase in the yield to maturity
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
