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A bond with 3 years to maturity and a coupon of 6 . 2 5 % is currently selling at $ 9 3 2 .
A bond with years to maturity and a coupon of is currently selling at $ Assume annual coupon payments. a What is its yield to maturity? b Compute its duration using Equation and the YTM calculated above at the discount rate.c If interest rates are expected to decrease by basis points, what is the expected dollar change in price? Percentage change in price?
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