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a) Compute the modified duration of a 10% coupon, 4-year corporate bond with a yield to maturity of 8%. b) Using the modified duration, If
- a) Compute the modified duration of a 10% coupon, 4-year corporate bond with a yield to maturity of 8%.
b) Using the modified duration, If the market yield drops by 25 basis points, there will bea ______% (increase/decrease) in the bond's price.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
