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A company has a RM1,000 par value bond that will mature in three years.The bondoffers a coupon rate of6percent and pays interest,semiannually.The bond's yield to

A company has a RM1,000 par value bond that will mature in three years.The bondoffers a coupon rate of6percent and pays interest,semiannually.The bond's yield to maturity(YTM) is 10 percent.

1.Calculate the Macaulay and Modified duration of the bond.

2.Assuming thatinterestgoes upto12 percent,calculate the estimated new price of the bond.

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