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A Treasury bond has a fix coupon rate of 15% (100), a face value of 1.000 and matures 3 years from today. If now is
A Treasury bond has a fix coupon rate of 15% (100), a face value of 1.000 and matures\ 3 years from today. If now is traded at 952 then calculate:\ a) Yield to maturity (IRR is asked). Explain your answer.\ b) Duration using the yield to maturity as the discount rate (Modified Duration).\ c) What happens with bonds price if you can buy treasury bonds at an interest rate\ of 11%? Comment your answer.
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