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1. The bond's YTM is 4%, coupon is 9%, term is 5 years semi. Calculate the effective duration. Deffective=2iPPupPdown 2. Using effective duration, if the

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1. The bond's YTM is 4%, coupon is 9%, term is 5 years semi. Calculate the effective duration. Deffective=2iPPupPdown 2. Using effective duration, if the ytm rises by 100bps(1%), calculate the new bond price. Using Modified duration to estinate percentage pirice change Dollar change in bond price Change in YTM in decimal

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