Calculate maculay''s duration

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Reference no: EM1348349

Market interest rates may increase by two percent in the near future. Calculate Maculay's duration, Modified duration as well as potential the change in rice, of the $1000 Xonox Company bond that has 3 years to maturity as well as a ten percent coupon. The present market rate of interest on bonds of alike risk is seven percent. You may presume the convexity factor (C) is 250. Show your work.

Reference no: EM1348349

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