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a. Calculate the duration of a $1,000 4-year bond with an 8% coupon (annual payments) that is currently selling at par. b. If yield changes

a. Calculate the duration of a $1,000 4-year bond with an 8% coupon (annual payments) that is currently selling at par.

b. If yield changes to 9%, predict the price change 1) with duration 2) Actual bond formula

PLEASE SHOW HOW TO CALCULATE USING FINANCIAL CALCULATOR. THANKS!

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