Question: 27. Consider a bond with 10 year to maturity, 10% coupon rate, and 15% yield to maturity. Suppose its modified duration is 8.5 years,

27. Consider a bond with 10 year to maturity, 10% coupon rate, and 15% yield to maturity. Suppose its modified duration is 8.5 years, and convexity is 56. a. What is its Macaulay duration? b. What will its price be if its yield to maturity increases to 15.1%?

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