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A Four-Year Maturity 0 Percent Coupon Corporate Bond with a Required

Question 6

Multiple Choice

A four-year maturity 0 percent coupon corporate bond with a required rate of return of 12 percent has an annual duration of ________ years.

A) 3.05
B) 2.97
C) 3.22
D) 3.71
E) 4.00

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