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A 5 year bond with face value $100, pays a coupon of $6.90 each year. The Yield is 6.4%. i) What is the present value

A 5 year bond with face value $100, pays a coupon of $6.90 each year. The Yield is 6.4%.

i) What is the present value of the bond? ii) What is the duration of the bond? (In years) iii) The Yield increases by 0.4%. What is the new price of the bond?

Use Annual Compounding Throughout.

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