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hsbc bank has issued a bond that pays 8% coupon paid annually and 10% yield to maturity. suppose that the current price of the bond
hsbc bank has issued a bond that pays 8% coupon paid annually and 10% yield to maturity. suppose that the current price of the bond is $1,050 and its duration is 4.80 years. required (a) determine the price change of the bond if interest rate increased by 2%. how much does the bond worth? (2 pts.) (b) find the price change of the bond, if interest rate decreased by 1%. how much should the bond worth if interest rate decreased by 1%? (2 pts.)
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