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What Is the Duration of a Three-Year Bond with a 5

Question 3

Multiple Choice

What is the duration of a three-year bond with a 5% coupon rate, a face value of $1,000, and a yield to maturity of 6%? Interest payments are made annually.


A) 2 years
B) 2.58 years
C) 2.86 years
D) 3 years
E) Insufficient information

Correct Answer:

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