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1. Consider U.S Treasury bonds pay coupon semi-annually and matures in 3 years. If the annual coupon bond is 8%, the par value $1000, and

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1. Consider U.S Treasury bonds pay coupon semi-annually and matures in 3 years. If the annual coupon bond is 8%, the par value $1000, and current yield to maturity (r) is 12%, then what would be the duration of the bond? Show your work 2. What would be the new price of the bond if there is a 60 basis points decrease in interest? Show your work

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