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A bond with a face value of $1,000 and matures after 15 years is currently selling for $980. The semiannual coupon on the bond is

A bond with a face value of $1,000 and matures after 15 years is currently selling for $980. The semiannual coupon on the bond is $80 (paid in two payments of $40 each).

Part a. Calculate the duration of the bond.

Part b. Calculate the change in the price of the bond if interest rates increase by 0.25%

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