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Problem $13-01$

Problem $13-01$

Calculate the Macaulay duration of an $8\%,$$$I_2,000$ par bond that matures in three years if the bond's YTM is $14\%$ and interest is paid semiannually.

a$.$ Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places.

years

b$.$ Assuming the bond's YTM goes from $14\%$ to $13\mathrm{.}0\%,$ calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any.

$\%$

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