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Consider a bond with 3 years to maturity and a coupon rate of 5%. The term structure is flat and the bond's yield to maturity

Consider a bond with 3 years to maturity and a coupon rate of 5%. The term structure is flat and the bond's yield to maturity is 3%. Assume the bond's face value is $1,000 and that it pays annual coupons.

a. Calculate the price of the bond.

b. What is the bond's duration?

c. What is the bond's modified duration.

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