Question: 4. A 10-year, 7.2% coupon bond with a face value of $1,000 is currently selling for $875.65. Compute your rate of return (as a percent)

4. A 10-year, 7.2% coupon bond with a face value of $1,000 is currently selling for $875.65. Compute your rate of return (as a percent) if you sell the bond next year for S 5. Calculate the duration of a bond with S1000 par value and a 4.5 percent coupon rate, 4 years until maturity, and a 7 percent yield to maturity? What is the expected change in price if interest rates were to rise by 2%? (Assume annual coupons) Now calculate the approximate percent change for an equivalent zero-coupon bond

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