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Question 1) A semi-annual bond has a YTM of 7%, it is selling for $980, and its Macaulay duration is 5 years. Assume the required

Question 1)

A semi-annual bond has a YTM of 7%, it is selling for $980, and its Macaulay duration is 5 years. Assume the required yield increases to 7.4%. What is the new price predicted by modified duration?

a. $958.75

b. $961.06

c. $971.23

d. $991.44

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