Question: Solve the problems below and answer the questions. Be sure to show your formula and your work. Explain your answers. Each question is worth 20

Solve the problems below and answer the questions. Be sure to show your formula and your work. Explain your answers. Each question is worth 20 points.

The Rock owns a 10-year bond, with a 6% coupon paid semi-annually, and a price of $1,078. What is the effective duration assuming a 50-basis point change in interest rates is closest to?

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