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Consider a 5 year $1,000 bond with 7% coupon rate making semiannual coupon payment. The yield curve is flat at YTM= 6% What is the

Consider a 5 year $1,000 bond with 7% coupon rate making semiannual coupon payment. The yield curve is flat at YTM= 6%

What is the price of the bond?

What is the duration of the bond?

Use the duration rule to calculate the change in price when interest rates go up by 3% (300bps)

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