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Calculate the requested measures for the bond with the following information. Coupon rate 4% Yield to maturity 3% Maturity (years) 2 Face value $100 a.

Calculate the requested measures for the bond with the following information.

Coupon rate

Yield to maturity

Maturity (years)

Face value

$100

a. Macaulay duration

b. Modified duration

c. Price value of a basis point (DV01)

d. The approximate bond price estimated using modified duration if the yield increases by 35

basis points

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