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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

3

3

Total

Price =                                                                                                    

Duration                     

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