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Please help!! Thank you. 5, Temple issued bonds to fund a new building. The bonds have a $1000 par value, 4% coupon rate with semiannual

image text in transcribedPlease help!! Thank you.
5, Temple issued bonds to fund a new building. The bonds have a $1000 par value, 4% coupon rate with semiannual payments, 8 years remaining to maturity and a current yield to maturity of 4.2%. Assume the bonds were issued on 3/2/15 and mature 3/2/25. a. b. C. d. e. f. What is your best estimate of the bond's current price? Calculate the duration and modified duration of the bond. What does this tell you? Calculate the anticipated bond price if interest rates fall to 4% next year using the modified duration. Calculate the anticipated bond price if interest rates rise to 5% next year using the modified duration. Calculate the bond's convexity. Redo the calculations for price changes based on interest rate changes you did in c & d above but include the correction for convexity. What differences do you observe in your calculations? Why? g

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