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#5 A B Consider the following newly issued bonds: begin{tabular}{llr|} cline { 2 - 3 } 4 & multicolumn{1}{c|}{ Inputs } & Juan Rojo, Incorporated

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A B Consider the following newly issued bonds: \begin{tabular}{llr|} \cline { 2 - 3 } 4 & \multicolumn{1}{c|}{ Inputs } & Juan Rojo, Incorporated 10-Year Bond \\ 5 & Settlement Date & 01012020 \\ 6 & Maturity Date & 01012030 \\ 7 & Coupon Rate & 0.080 \\ 8 & Redemption Value & 100 \\ 9 & Coupons per Year & 2 \\ \cline { 2 - 3 } 10 & & \\ \cline { 2 - 3 } 11 & & 0.075 \\ 12 & Initial Yield & 0.010 \\ 13 & Yield Change & \end{tabular} Required: Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration for each bond. Then, predict the price change given a change in the prevailing yield. Then, assume the market yield changed, as described below. In the second table, calculate the 16 approximate price change and new price according to duration (the first-order approximation). 17 18 (Use cells A5 to C13 from the given information to complete this question.) \begin{tabular}{l|l|l|} \hline 20 & & \\ 21 & Initial Price \\ 22 & Macaulay Duration Rojo, Incorporated 10-Year Bond & McAllister Avionics 9-Year Bond \\ 23 & Modified Duration \end{tabular}

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