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2. A bond with a face value of $1,000 issued by KLC Corporation has a coupon interest rate of 9% and maturity of 5 years.

2. A bond with a face value of $1,000 issued by KLC Corporation has a coupon interest rate of 9% and maturity of 5 years. Calculate the duration of this bond.

3. For the bond in Q2 calculate the modified duration. What would be the change in the price of this bond if the market interest rate increases by 5 percent. Answer the question using the Modified Duration

R=0.10

Answer Q3 only please

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