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Tom is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds.

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Tom is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds. Coupon rate Maturity (Yrs) Payment frequency Face value Yield to maturity Bond A 7% 15 1 $1,000 10% Bond B 10% 15 1 $1,000 10% Bond C 12% 15 1 $1,000 10% 1) (3 points) Calculate the price, Macaulay duration, and modified duration of each of the three bonds, and determine the type of each bond (use the drop-down list). 2) (2 points) Calculate the current yield for each bonds. 3) I(2 points) If the yield to maturity stays 10%, what will be the price of each bond one year from now? What is the expected capital gains/loss yield for each bond? What is the expected holding period return over one year for each bond? 4) (2 points) Determine the percentage changes in the bond price to a 2.5 basis-point (0.025%) increase in the yield based on only duration

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