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Consider a bond with a coupon rate of 9%, face value of $1,000, term to maturity of 4 years, and yield to maturity of 5%.
Consider a bond with a coupon rate of 9%, face value of $1,000, term to maturity of 4 years, and yield to maturity of 5%. Without doing any calculations, which of the price and duration pairings below can be true for this bond?
a. Price = $800, MacD = 6.6 years
b. Price = $1,250, MacD = 3.7 years
c. Price = $800, MacD = 4 years
d. Price = $800, MacD = 3.7 years
e. Price = $1,250, MacD = 4 years
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