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A corporate bond has 2 years to maturity, a coupon rate of 6%, aface value of $1,000 and pays coupons semiannually. The marketinterest rate for similar bonds is 7.5%.What is the price of the bond (in $)?What is the bond's duration in years?If yields fall by 0.8 percentage points, what is the newexpected bond price based on its duration (in $)?What is the actual bond price after the change in yields (in$)?What is the difference between the two new bond prices (inabsolute $)?
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Accounting