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9: Betty and Bob buy a 2-year bond with face and maturity value of $100 and coupons of $6, 14, 9, and 5 in that
9: Betty and Bob buy a 2-year bond with face and maturity value of $100 and coupons of $6, 14, 9, and 5 in that order and is priced to yield 16% per annum compounded semiannually. a Compute the price correct to 2 places after the decimal point. b Compute the dollar duration, correct to 2 places after the decimal place. You must use calculus. Your answer is as per semiannual. c Compute the modified duration, correct to 2 places after the decimal place. State your answer in years. d Compute the Macaulay duration, correct to 2 places after the decimal point, by using the previous results. State your answer in years. a. ______________________ b. ______________________ c. _____________________ d
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