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Consider an 8% annual coupon bond with a face value of $1,000. It has two years until maturity and has a yield to maturity of

Consider an 8% annual coupon bond with a face value of $1,000. It has two years until maturity and has a yield to maturity of 6%.

i. Find the duration of this bond.

ii. If the yield decreases by 30 basis points (.3%) what will be the approximate change in the value of the bond? Use your answer to part (a) in this calculation.

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