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A 29-year bond pays a quarterly coupon of 7% (compounded quarterly), on a face value of $2000. The bond's yield is 5% compounded quarterly.
A 29-year bond pays a quarterly coupon of 7% (compounded quarterly), on a face value of $2000. The bond's yield is 5% compounded quarterly. (a) Determine the price of the bond. Express your answer in dollars, to the nearest cent. Price = $ (b) Determine the derivative of the bond's price with respect to (per-period) yield, at its current yield. Express your answer in dollars, to the nearest. Derivative = $ (c) Determine the bond's duration. Express your answer in years, to two decimal places. Please use the rounded answers from (a) and (b) in your calculation. Duration = Years
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