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Consider a Five-Year, 8 Percent Annual Coupon Bond Selling at Par

Question 41

Multiple Choice

Consider a five-year, 8 percent annual coupon bond selling at par of $1,000. What is the duration of this bond?

A) 5 years.
B) 4.31 years.
C) 3.96 years.
D) 5.07 years.
E) Not enough information to answer.

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