Question: 5. Consider a 9.5 year bond with a 4% coupon payable on a semi-annual basis. a) If par bonds of comparable maturity and credit quality

5. Consider a 9.5 year bond with a 4% coupon payable on a semi-annual basis.

a) If "par" bonds of comparable maturity and credit quality are currently yielding 3.20%, what is the approximate price of this 4% bond (assume par is $1,000)?

b) Using a financial calculator, calculate the modified duration of this bond.

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