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Consider a 3-year bond with 13 percent semi-annual couponpayments and currently priced to yield 12 per cent per annum. Calculate duration of the bond. What

Consider a 3-year bond with 13 percent semi-annual couponpayments and currently priced to yield 12 per cent per annum.

  1. Calculate duration of the bond.
  2. What is the percentage of price change if interest rate increases to 12.35% per annum?

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