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A $100 000 Bond Has a Term to Maturity of One

Question 10

Multiple Choice

A $100 000 bond has a term to maturity of one year,with half-yearly coupons set at 10% p.a.Calculate the duration of the bond in periods if the yield is 9%.


A) 1.702 1.702
B) 1.882 1.882
C) 1.953 1.953
D) 2.000 2.000

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