# Question: 1a calculate the price and duration for the following bond...

###### Question details

1.a. Calculate the **price** and
**duration** for the following bond when the going
rate of interest is 3%. The bond offers 2.75% coupon rate, matures
in 3 years and has a par value of $1,000. Show full calculations in
the table below.

YR |
PV of $ 1 at 3% |
Bond Cash Flows |
PV (Cash Flows) |
Year * Present Value of Cash Flow |

1 |
||||

2 |
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3 |
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3 |
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Total |

Price =
** **

Duration