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Consider a 3-year maturity annual 9% coupon paying bond with a YTM of 12%. What is the Duration of this bond? What will be the

Consider a 3-year maturity annual 9% coupon paying bond with a YTM of 12%. What is the

Duration of this bond?

What will be the predicted price of this (using Duration in the calculations) bond if the market

yield increases by 100 basis points? If your calculation does not use Duration, you will not get

full credit for this problem. [10 + 10 = 20 points]

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