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A corporate bond pays 8% annual coupon rate and has $1,000 par value. It will mature in 5 years and its yield to maturity

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A corporate bond pays 8% annual coupon rate and has $1,000 par value. It will mature in 5 years and its yield to maturity is 9%. Calculate: (1) the bond's price. (2) its Macaulay duration.

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To calculate the bonds price and Macaulay duration we can use the following formulas 1 Bond Price Fo... blur-text-image

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