Question: Problem 1. A five-year bond with a face value of $1000 and 8% coupon at the end of each year yields 89. Using annual compounding,

Problem 1. A five-year bond with a face value of $1000

Problem 1. A five-year bond with a face value of $1000 and 8% coupon at the end of each year yields 89. Using annual compounding, what is the bond's price? 1000 QUESTION 2 What is the modified duration of the bond above

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