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Consider a bond with 10,000 USD par value, 8% coupon rate paid semi annually and 10 years to maturity. Assuming a 10% required return, answer

Consider a bond with 10,000 USD par value, 8% coupon rate paid semi annually and 10 years to maturity. Assuming a 10% required return, answer the following questions:

Find the PV of the bond

Find the PV of the bond given its a Zero-Coupon Bond.

What is the bonds price elasticity if the required return changed to 12%?

Calculate the duration of the bond.

What is the modified duration at an 8% yield?

What is the percentage change in bonds price for an increase in yield for 0.3 percentage point.

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