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A bond with $1,000 face value, 6% coupon, market interest rates of %7, and three years to maturity. Calculate the duration of the bond Assume

A bond with $1,000 face value, 6% coupon, market interest rates of %7, and three years to maturity.

Calculate the duration of the bond

Assume that market interest rates increased to 9%, re-calculate the duration of the bond

Comment generally on the relationships between the interest rates, coupons, and the duration

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