Question: Please also show the workings. Please highlight the correct answer Mathematical Question 3 (7 marks) Calculate the duration of a $1000 face value, 10% coupon

Please also show the workings.

Please highlight the correct answer

Please also show the workings. Please highlight the correct answer Mathematical Question

Mathematical Question 3 (7 marks) Calculate the duration of a $1000 face value, 10% coupon bond with 3 years to maturity if the YTM is 12% semiannually. Calculate the duration of this bond. Calculate the new price of the bond if YTM increases by 70 basis points. Calculate the duration of this bond. (Nearest approximate value) 2.725% 2.34 years 2.43 years O 2.725 years 2.43% Calculate the new price of the bond if YTM increases by 70 basis points. (Nearest approximate value) $933.85 $970.02 $968.12 O $935.75

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