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1. Find the Duration of a 4% coupon bond (paid semi-annually), with 6 years to maturity and a YTM of 2%. 2. Find the

1. Find the Duration of a 4% coupon bond (paid semi-annually), with 6 years to maturity and a YTM of 2%. 2. Find the Modified Duration. 3. What is the predicted change in price using modified duration if rates increase by 1%? 4. What is the acutal change in price for this bond if rates increase by 1%?

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