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You have the following bond maturing in 7 years: Face Value =1.000$; Annual coupons = 80$; Annual Interest rate =6% Compute the PV of the

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You have the following bond maturing in 7 years: Face Value =1.000\$; Annual coupons = 80\$; Annual Interest rate =6% Compute the PV of the bond? What will happen to the bond price if the interest rate increases to 8% ? Compute both the duration and the modified duration of the bond? Interpret your results

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