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Q3. We consider a 20-year zero-coupon bond with a 6% YTM and $100 face value. Compounding frequency is assumed to be annual. 1. Compute its

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Q3. We consider a 20-year zero-coupon bond with a 6% YTM and $100 face value. Compounding frequency is assumed to be annual. 1. Compute its price, modified duration, dollar duration, convexity and $convexity? 2. calculate the price change of the bond when the YTM changes to 11%. a. by using the one-order Taylor estimation; b. by using the second-order Taylor estimation

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