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Consider an 8% coupon bond with a maturity of 4 years and a face value of $1000. It pays the coupons once a year and

Consider an 8% coupon bond with a maturity of 4 years and a face value of $1000. It pays the coupons once a year and is currently priced to provide a yield to maturity of 7%.

A)Calculate the duration of this bond.(6 marks)

B)Using duration determine the percentage change in the price of this bond when interest rates fall by .15%.(4 marks)

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