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Duration of a 3 year bond Calculate the duration of a three-year bond with an annual coupon of $50 paid semiannually. The face value of

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Duration of a 3 year bond

Calculate the duration of a three-year bond with an annual coupon of $50 paid semiannually. The face value of the bond is $1,000. The zero rates for next three years are as follows. Part 2. Calculate the change in the bond value if the yield increases by 1% using the duration of the bond

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