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Problem 19. A 100 par value 3 year bond pays annual coupons at a rate 7% coupon rate with annual coupon payments). The current annual

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Problem 19. A 100 par value 3 year bond pays annual coupons at a rate 7% coupon rate with annual coupon payments). The current annual effective interest rate is 7%. (1) Calculate the duration, the modified duration and the convexity of the bond (11) If the interest rate change from 7% to 8%, what is the percentage change in the price of the bond ? (4 points

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