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An investor is considering purchasing a treasury bond with a 3 year maturity, a 6% coupon and a 7% Yield to Maturity. The bond pays

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An investor is considering purchasing a treasury bond with a 3 year maturity, a 6% coupon and a 7% Yield to Maturity. The bond pays interest semiannually. a. What is the bond's modified duration? b. If market interest rates decrease by 30 basis points (.30%), what is the predicted price change, in %, based upon the bond's duration

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