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Zero-coupon Bond Year Price A 1 979.09 B 2 921.72 C 3 831.68 D 4 782.12 Consider the following zero-coupon bonds, each of which has

Zero-coupon Bond

Year

Price

A

1

979.09

B

2

921.72

C

3

831.68

D

4

782.12

Consider the following zero-coupon bonds, each of which has a par value of $1,000: Zero-coupon Bond Year Price A 1 979.09 B 2 921.72 C 3 831.68 D 4 782.12

d) What is the price of a 4-year maturity bond with a 6% coupon rate paid annually? (Par value = $1,000). e) Given the answer to question (d), calculate the yield to maturity for this 4-year coupon bond. f) Calculate the duration of the above 4-year coupon bond. g) If the market yield changes by 0.05% in the next few minutes, what is the expected percentage price change of the bond over the next few minutes?

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