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Question 4 (10 marks) Consider a 10-year, 8% annual coupon bond with $1,000 par value. If the current YTM of the bond is 8%, estimate

Question 4 (10 marks) Consider a 10-year, 8% annual coupon bond with $1,000 par value. If the current YTM of the bond is 8%, estimate its effective duration based on a 10 basis point rate shock (up or down by 5 bps)

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