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10. Consider a bond with a face value of $100 that pays an 8% annual coupon with 5 years to maturity. What is the percentage

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10. Consider a bond with a face value of $100 that pays an 8% annual coupon with 5 years to maturity. What is the percentage change in the price of the bond if its yield to maturity increases from 5% to 7% ? (a) Use duration analysis to obtain your result. Fill in the Table below to find the duration of the bond and then calculate the change in the price given the change in the YTM. %pricechange=(1+rinitial)Durationr (b) Check your result in (a) by calculating the price of the bond under each YTM ( 5% and 7%) and then calculating the percentage change in the price

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