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Part 2: Duration and price sensitivity a) Calculate the duration and modified duration of a bond with a face of ( $ 1,000 ), a

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Part 2: Duration and price sensitivity a) Calculate the duration and modified duration of a bond with a face of \\( \\$ 1,000 \\), a \6 coupon rate, and a \5 YTM with 1 payment per year and a maturity of 10 years, using the Excel DURATION and MDURATION formulas. b) Calculate the following: 1. What are the approximate percentage and dollar changes in price for a \1 change in interest rates using the duration approximation formula? 2. What are the actual percentage and dollar changes in price if interest rates increase by \1

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