Calculate the macaulay duration for the bond

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A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually.

Calculate the current price of the bond.

Calculate the Macaulay duration for the bond. Please interpret your answer.

Calculate the modified duration for the bond.

Estimate the percentage price change for this 5-year $1,000 par value bond, with a 6% coupon, if the yield rises from 8% to 8.5%. Interest is paid semiannually.

Calculate the convexity measure.

Reference no: EM131444242

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