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Use the table below for the questions that follow, and assume semi-annual interest payments. Bond Coupon Rate Yield Maturity A 6% 4.5% 3 years B

Use the table below for the questions that follow, and assume semi-annual interest payments.

Bond

Coupon Rate

Yield

Maturity

4.5%

3 years

Zero coupon

6.25%

7 years

Based on your answer for the duration of Bond A, what isthe duration predicted dollar price changefor a 1% increase in interest rates?Remember, positive and negative signs matter!

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