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Calculate the Duration (Measured in Six-Monthly Periods)of a Bond with a Price

Question 21

Multiple Choice

Calculate the duration (measured in six-monthly periods) of a bond with a price of $100,two years to maturity,and yield and coupon rates of 5% and 10% p.a.respectively.


A) 3.65 3.65
B) 3.74 3.74
C) 3.79 3.79
D) 3.82 3.82

Correct Answer:

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