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You have the following bond : 5-year 6% coupon with annual interest payments YTM IS 6% A. Calculate price and duration of this bond B.

You have the following bond : 5-year 6% coupon with annual interest payments YTM IS 6%

A. Calculate price and duration of this bond

B. Calculate new price if YTM instantly inceases to 8%

C. Calculate new duration based on part B.

D. What can you conclude about relationship between market interest rates and Duration

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