You now own a 14 annual coupon bond maturing in four years, Financial Management

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You now own a 14 annual coupon bond maturing in four years

You now own a 14% annual coupon bond maturing in four years and yield 16%. (Please show how you got your answers, show the calculations.)

A. What is the price of the bond? (Using semi annual coupon payments)

B. What si the duration of this bond?

C. If the yield on the bond increases by 2%, calculate the percentage change in the bond's price using the duration price change relationship.

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Financial Management: You now own a 14 annual coupon bond maturing in four years

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Financial Management: You now own a 14 annual coupon bond maturing in four years

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