Consider a 5-year bond with a face value of $1,000 selling at par (i.e., at $1,000) that pays a 5% annual coupon. (a) Compute the
Consider a 5-year bond with a face value of $1,000 selling at par (i.e., at $1,000) that pays a 5% annual coupon. (a) Compute the duration of this bond (b) Suppose the market required yield to maturity increases by 50 basis points. What is the percentage change in the bond price
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