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A two-year 8% coupon bond that makes annual coupon payments has a face value of 100$ and an (annual) yield to maturity of 3%. a.What

A two-year 8% coupon bond that makes annual coupon payments has a face value of 100$ and an (annual) yield to maturity of 3%.

a.What is the price of the bond?

b.How would the price of the bond change if the yield went up to 8%?

Calculate the modified duration of this bond when the yield is 3%.

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