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Exercise 16.2. Compute the duration D and modified duration MD of a 6% coupon bond with T=5 and semi-annual payments. YTM is 9% and the

Exercise 16.2. Compute the duration D and modified duration MD of a 6% coupon bond with T=5 and semi-annual payments. YTM is 9% and the face value (par value) is 1,000. Solution. We can use the following table to compute the duration and modified-duration

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