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Assume a Bond with a $1,000 Par Value and an 11

Question 16

Multiple Choice

Assume a bond with a $1,000 par value and an 11 percent coupon rate, two years remaining to maturity, and a 10 percent yield to maturity. The duration of this bond is


A) 1.90 years.
B) 1.50 years.
C) 1.92 years.
D) none of the above

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