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A bond pays annual interest. Its coupon rate is 9%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity

A bond pays annual interest. Its coupon rate is 9%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity (YTM) is currently 6%.

a. Calculate the Macaulay's duration.

b. Calculate the modified duration

c. Calculate the percentage change in bond price if YTM increases by 1%

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