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From the bond in the previous problem, assume the yield rate increases by 50 basis points (.5%). Determine the following: (a) Find the exact price

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From the bond in the previous problem, assume the yield rate increases by 50 basis points (.5%). Determine the following: (a) Find the exact price of the bond. (b) Estimate the price of the bond using the results from the front side of this sheet. Consider a three-year $1000 par value bond with 6% annual coupons priced to yield 8% annual effective. Determine the following: (a) The price of the bond (b) The modified duration of the bond (c) The modified convexity of the bond From the bond in the previous problem, assume the yield rate increases by 50 basis points (.5%). Determine the following: (a) Find the exact price of the bond. (b) Estimate the price of the bond using the results from the front side of this sheet. Consider a three-year $1000 par value bond with 6% annual coupons priced to yield 8% annual effective. Determine the following: (a) The price of the bond (b) The modified duration of the bond (c) The modified convexity of the bond

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