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3: Adani Ports intend to blue bonds to finance one of their projects. Bonds have a maturity of four years with a face value of
3: Adani Ports intend to blue bonds to finance one of their projects. Bonds have a maturity of four years with a face value of Rs. 500 and an agreed coupon rate of 8%. Assume the interest rate (yield to maturity) is 10%. The coupon payment is made half-yearly. 1. Calculate the price of the bond. 2. Calculate the duration of the bond. 3. Calculate the modified duration of the bond. 4. If the interest rate goes to 12 %, what is the new price of the bond? 5. If the interest rate comes down by 0.50%, what is the new price of the bond
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