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6. Calculate the duration for a five-year bond with a 4% coupon rate assuming the yield to maturity is 5%. Use the duration to estimate

6. Calculate the duration for a five-year bond with a 4% coupon rate assuming the yield to maturity is 5%. Use the duration to estimate what will happen to the price of the bond if the yield to maturity rates increase by 1%. Exactly how is duration interpreted? (10 pts.)

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