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Q3. Calculate the requested measures in parts (a) through (f) for bonds A (assume that each bond pays interest semiannually): Bond A Coupon 8% Yield

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Q3. Calculate the requested measures in parts (a) through (f) for bonds A (assume that each bond pays interest semiannually): Bond A Coupon 8% Yield to maturity 8% Maturity (years) 2 Par $100.00 Price $100.00 (a) The dollar value of a basis point (ppt #13, LN03) (b) Macaulay duration (using the bond-rate function in compact form -- on ppt #17, LN03). (c) Modified duration (using the relation between modified duration and Macaulay duration, Eq. 4.7 on ppt #15, LN03)

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