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Calculate the Duration of a 4-Year $1,000 Face Value Bond

Question 7

Multiple Choice

Calculate the duration of a 4-year $1,000 face value bond, which pays 8% coupons annually throughout maturity and has a yield to maturity of 9%.

A) 3.29 years
B) 3.58 years
C) 3.69 years
D) 3.89 years
E) 4.00 years

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