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You have the following bond maturing in 7 years: Face Value =1.000$ Annual coupons =80$; Annual Interest rate =8% 1. 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 =8% 1. Compute the PV of the bond? 2. What will happen to the bond price if the interest rate increases to 8% ? 3. Compute both the duration and the modified duration of the bond

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