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Consider a Bond with a Face Value of $1,000, an Annual

Question 46

Multiple Choice

Consider a bond with a face value of $1,000, an annual coupon rate of 6 percent, a yield to maturity of 8 percent, and 10 years to maturity. This bond's duration is


A) 8.7 years.
B) 7.6 years.
C) 10.0 years.
D) 6.5 years.

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