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The Short-Term Debt Consists of 4-Year Bonds Paying an Annual

Question 74

Multiple Choice

The short-term debt consists of 4-year bonds paying an annual coupon of 4 percent and selling at par.What is the duration of the short-term debt?

A) 3.28 years.
B) 3.53 years.
C) 3.78 years.
D) 4.03 years.
E) 4.28 years.
[Refer to: 9-121]

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