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A $1,000 par value, 10-year bond, with a 10% annual coupon and a yield to maturity of 7% has a duration of 7.068 years. If

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A $1,000 par value, 10-year bond, with a 10% annual coupon and a yield to maturity of 7% has a duration of 7.068 years. If rates are expected to increase by 50 basis points (+0.50\%) to 7.5%, the predicted $ change in the bond's price is actual change in the bond's peice if rates increase to 7.5% is [Hint: firts Eompute the new price of the bond using a 7,5% yield] ? Muliple Choice $3999,53999 539.99;53911 5100;599 53911,33939 Based on the Treasury security spot rates below, what is the implied five-year forward rate in five years (i.e what is the expected spot rate on a five-year Treasury bill that you plan to purchase five years from now?) MaturityYleid () T-year: 0.152% 2-year 0.137% 3-year 0.149\% 5year: 025296 10 -year: 0.693% Multiple Cnoice 0.1524 0.2524 0693% 1136%

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