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A $1,000 face value bond has a 6 percent coupon and pays interest semiannually. The bond matures in 8 years and has a yield to
A $1,000 face value bond has a 6 percent coupon and pays interest semiannually. The bond matures in 8 years and has a yield to maturity (YTM) of 6.75 percent. What is the duration of this bond? How much will the price of the bond change if interest rate goes down to 6 percent using the approximation method?
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