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3. Consider a 4-year bond with annual coupon payments. The bond has a facevalue of $100 and sells for $95. The coupon rate is 3%,

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3. Consider a 4-year bond with annual coupon payments. The bond has a facevalue of $100 and sells for $95. The coupon rate is 3%, so that the vector of yealy payments is [3, 3, 3, 103]'. Round your answers to 4 decimal digits. 3] Compute the bond's yield-to-maturity. b) Using the bond's yield-to-maturity, compute its duration. (2] How a decrease in the bond's yield-to-maturity affects its price

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