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There is a two-year, $1,000 bond that pays a semi-annual coupon of 10 percent and trades at a yield of 8 percent. A. Calculate Macaulay

There is a two-year, $1,000 bond that pays a semi-annual coupon of 10 percent and trades at a yield of 8 percent. A. Calculate Macaulay duration, Modified duration, and Dollar duration B. What will be change in price and the new price using the duration model if interest rates increase to 8.5 percent? What if interest rates decrease to 7.5 percent

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