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Consider the following a. What is the duration of a two-year bond thot pays an annual coupon of 10 percent and whose current yleld to

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Consider the following a. What is the duration of a two-year bond thot pays an annual coupon of 10 percent and whose current yleld to maturity is 16 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161 )) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.4 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.9. 32.16 ))

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