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5. A bond has just been issued. The bond has an annual coupon rate of 8% and coupons are paid annually. The bond has a

image text in transcribed 5. A bond has just been issued. The bond has an annual coupon rate of 8% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 8 years. The bond's yield to maturity is 9%. a. Calculate the actual currency change in the bond's price as the yield to maturity changes from 9% to 9.75%. b. Use the bond's duration to calculate the bond's approximate currency price change as the yield to maturity changes from 9% to 9.75%

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