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You are given a 4-year, 1.5% annual coupon bond with a maturity value of $100. The yield to maturity is 2%. Calculate the following: a)

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You are given a 4-year, 1.5% annual coupon bond with a maturity value of $100. The yield to maturity is 2%. Calculate the following: a) Price of the bond B b) Duration of the bond using the duration formula c) Duration of the bond as a sensitivity of the bond price to a small change in yield d) Show that b) and c) produce practically the same values

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