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2) a) DEF Corp has a 5% coupon bond making annual payments that matures in 4 years. Find the duration of the bond if it

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2) a) DEF Corp has a 5% coupon bond making annual payments that matures in 4 years. Find the duration of the bond if it has a yield to maturity of 3% Using the modified duration relationship, find the price of the band if the yield goes down 75bps. Compared to a zero-coupon bond that has a maturity of 4 years, which bond would change most to a rate change? Explain without using calculations, b)

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