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Extra Problem 10 (extra 5 points): A seven-year bond with a yield of 4% (continuously compounded) pays a 2% coupon at the end of each

Extra Problem 10 (extra 5 points):

A seven-year bond with a yield of 4% (continuously compounded) pays a 2% coupon at the end of each year.

a) Calculate the bonds price.

b) Calculate the bonds duration and modified duration

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