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: A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon What is the price of the bond

: A bond has a 7.5% annual coupon rate with 4 years to maturity and pays annual coupon

What is the price of the bond if the yield to maturity is 5%

1.2 What is price of the bond if the yield to maturity increases by 0.2%?

What is the % change in the price of the bond when yield increases by 0.2%?

1.4 What is the bond duration?

What is the modified duration?

Using the modified duration, what is the percentage change in the price if the yield

increases by 0.2%

1.6 What can you conclude regarding the error-estimate based on the modified duration?

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