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An investor buys a five-year bond with a 3.00 % coupon rate paid annually. The bond, with a yield-to-maturity of 6.22%, is purchased at a
An investor buys a five-year bond with a 3.00 % coupon rate paid annually. The bond, with a yield-to-maturity of 6.22%, is purchased at a price of 86.5007per 100 of par value. Assuming a7-basis point change in yield-to-maturity, the bonds approximate modified duration is closest to:
a.4.33
b.4.52
c.4.42
Please post answers in excel and explain
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