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Consider an 8-year, 7 percent coupon, $1,000 bond that is priced at $866.09583 for a duration of 24.124 periods. Assume quarterly coupon payments! (i) Calculate

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Consider an 8-year, 7 percent coupon, $1,000 bond that is priced at $866.09583 for a duration of 24.124 periods. Assume quarterly coupon payments! (i) Calculate the modified duration and convexity of this bond, and (ii) Use your answers for BOTH modified duration and convexity to calculate the predicted bond price assuming that bond yields rise by 260bps

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