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Given a bond with six-monthly coupons of 6% per annum and two years to maturity. The investment face value is $1,000 and the yield to
Given a bond with six-monthly coupons of 6% per annum and two years to maturity. The investment face value is $1,000 and the yield to maturity is 9% per annum
i) Calculate the duration of the bond.
ii) Use the duration measure to estimate the change expected in the bond price if the yield changes to 8% per annum
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