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A 3-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.25%. Coupon is to be paid semi-annually. The reported annual

A 3-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.25%. Coupon is to be paid semi-annually. The reported annual yield to maturity is 6.8%. Solve the following questions:

a.What is the present value of the bond?

b.What is the duration of the bond?

c.If the yield to maturity changes to 2%, what will be the present value?

d.If the yield to maturity changes to 7%, what will be the present value?

e.If the yield to maturity changes to 16%, what will be the present value?

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