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Odehe Rentals has issued bonds that have a 12% coupon rate, payable annually. The bonds mature in 4 years, have a face value of $1,000,

Odehe Rentals has issued bonds that have a 12% coupon rate, payable annually. The bonds mature in 4 years, have a face value of $1,000, and a yield to maturity of 8.5%. a. What is the price of the bonds? b. Calculate the duration and modified duration of the bond. c. If interest rates fall by 2% what will the new price of the bond be?

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