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( 2 5 marks ) . A 3 - year 6 % bond pays coupon semiannually. The term structure is given as Year 0 0

(25 marks). A 3-year 6% bond pays coupon semiannually. The term structure is
given as
Year 00.511.522.53
Interest Rate 22.252.52.7533.25
All rates are semiannually compounded.
(a) Calculate the price of the bond.
(b) Calculate the duration of the bond.
(c) Calculate the bonds yield to maturity.
(d) If the bonds yield to maturity changes by 1%, how much does the bond price
approximately change?

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