A 30-year bond has a 7 once a year coupon and an 8 yield to


A 30-year bond has a 7% (once a year) coupon and an 8% yield to maturity.

A) What is the modified duration?

B) Without using convexity, if the yield changes to 10%, how much will the price of the bond change (in %)?

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Financial Management: A 30-year bond has a 7 once a year coupon and an 8 yield to
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