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Calculate the approximate modified duration of a 4-year, 5% coupon, semi-annual bond if yields change by 50bps. Assume the bond currently sells at 5% yield
Calculate the approximate modified duration of a 4-year, 5% coupon, semi-annual bond if yields change by 50bps. Assume the bond currently sells at 5% yield to maturity (YTM). a) 1.79 b) 3.59 c) 7.17 d) 11.95 e) None of the above
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