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3. A bond with $1,000 face value, 10% coupon, market interest rates of %7, and 10 years to maturity.' a. Calculate the duration of the

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3. A bond with $1,000 face value, 10% coupon, market interest rates of %7, and 10 years to maturity.' a. Calculate the duration of the bond. Show calculation. b. Assume that market interest rates increased to 12%, re-calculate the duration of the bond c. Comment generally on the relationships between the interest rates, coupons, and duration

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