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Question 2: BBC has just issued a new annual coupon bond that has 5 years to...

Question 2: BBC has just issued a new annual coupon bond that has 5 years to maturity, a coupon rate of 6% and trades at par at a price of $1000. You may assume that the yield-curve is flat. Compute the duration of the BBC bond and estimate the dollar price change of the BBC bond using duration if interest rates increase by 3.04%.

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