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

Question 9

Multiple Choice

A $100 000 bond has a term to maturity of two years,with half-yearly coupons set at 13% p.a.Calculate the duration of the bond in periods if the yield is 9%.


A) 3.659 3.659
B) 3.731 3.731
C) 3.812 3.812
D) 3.825 3.825

Correct Answer:

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