Question: QUESTION 22 A fixed coupon bond with a years untii maturity and a coupon rate of or paid annually is currently trading at a yield

QUESTION 22 A fixed coupon bond with a years untii maturity and a coupon rate of or paid annually is currently trading at a yield of BM. Answer the following using the assumption of a 51.000 Face Value fin other words, use the dollar price and NOT the quoted price of the bond). The price of the bond is 5 The Modified Duration of the bond is NOTE: Take your answer out to 2 decimal places. Example: 3.05 Using only Modified Duration. Imagine interest rates dropped 100 basis points in other words, the yield went down 1.00%) the estimated new price of the bond is 5

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