What is the percentage change in price for each on

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Consider a bond that has a coupon rate of 5%, five years to maturity, $1,000 par value, and is currently priced to yield 6% semi-annually. Calculate the MaCaulay duration, Modified Duration, and effective duration. If interest rates increase by 1%, what is the percentage change in price for each on? Explain how each is computed and why they provide different numbers.

Reference no: EM131893399

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