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3. 1) A bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to

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3. 1) A bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.84%, what is your predicted new value (or new price) of the bond? 2) At a 4% yield, what is the duration of a perpetuity that pays $100 once a year forever

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