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A 2 5 year bond pays 9 % coupon and has a face value of $ 1 0 0 . Suppose the initial yield is

A 25 year bond pays 9% coupon and has a face value of $100. Suppose the initial yield is 9%. A) Calculate the price of the bond. B) Approximate the price change due to duration of a change in yield to 7%. C) If the bond as originally described had a shorter time to maturity than 25 years, how would you answer question b) change and what is reason?

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