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A six-year Eurobond pays coupons annually. Suppose the annual coupon is 8 percent, the face value of the bond is $1,000, and the current yield

  1. A six-year Eurobond pays coupons annually. Suppose the annual coupon is 8 percent, the face value of the bond is $1,000, and the current yield to maturity (R) is 8.5 percent. Compute the

a. Price of the bond

b. Duration of the bond.

c. Modified duration of the bond

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