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5. (8 points) 0 A 6-year 8% coupon bond has a yield of 9%. Using annual compounding, what would the duration of the bond

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5. (8 points) 0 A 6-year 8% coupon bond has a yield of 9%. Using annual compounding, what would the duration of the bond equal? (2 points) If interest rates were to decrease by 30 basis points, what percentage change in price would you expect for the bond? (3 points) Find the new price. (2 points) If the required yield increased from 9% to 10%, what would happen to the duration? You do not have to calculate the new duration.

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