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

Question 41

Multiple Choice

A $100 000 bond has a term to maturity of two years,with half-yearly coupons set at 4% p.a.Calculate the duration of the bond in periods if the yield is 5%.


A) 3.714 3.714
B) 3.886 3.886
C) 3.827 3.827
D) 3.831 3.831

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