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Consider a coupon bond with five years to maturity. The coupon rate is 8%, and the principal is 100. (a) What is the present value

Consider a coupon bond with five years to maturity. The coupon rate is 8%, and the principal is 100.

(a) What is the present value at zero interest?

(b) What is duration at zero interest?

(d) Using the duration method, how much does the price change if the interest rate in-creases from 5% to 6%?

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