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Compute the Macaulay duration using the semiannual compounded rate of interest of 5% for a semiannual 4% coupon bond that matures in 2 years. Then,

Compute the Macaulay duration using the semiannual compounded rate of interest of 5% for a semiannual 4% coupon bond that matures in 2 years. Then, forecast the bond price using your result when the interest rate falls by 10 basis points.

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