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Business, 13.01.2021 17:10 hmu323

Bond A has a price of 2,750 at an annual effective yield rate of 6%. The modified duration of the bond is 12. Bond B has a price of 2,000 at an annual effective yield rate of 6%. The modified duration of the bond is ModDB. If the annual yield rate drops by 2%, both estimated bond prices increase by the same dollar amount using the first-order Macaulay approximation. Calculate ModDB.

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Bond A has a price of 2,750 at an annual effective yield rate of 6%. The modified duration of the bo...
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