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Given a 5-year annual coupon bond with a face value of $1000, coupon rate of 8.5% and a yield to maturity of 7%. a. Calculate

Given a 5-year annual coupon bond with a face value of $1000, coupon rate of 8.5% and a yield to maturity of 7%.

a. Calculate the Macaulay duration of this bond

b. If yield to maturity decreases from 7% to 5.2%, calculate the price of bond after yield to maturity changes

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