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Question 2 Suppose a hypothetical bond is currently priced at $ 9 9 2 . Its Macauley duration is 1 2 . 3 4 years.
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Suppose a hypothetical bond is currently priced at $ Its Macauley duration is years. Yieldtomaturity is Interest is paid quarterly. If market interest rates increase by basis points, estimate the new bond price. You may round to the nearest dollar. Show all formulas & calculations. Excel is optional. If you use Excel please include the spreadsheet.
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