Multiple Choice
Consider a security with a face value of $100 000, which is to be repaid at maturity.The security pays an annual coupon of 8% and has a maturity of three years.The current discount rate is 10%.What is the security's duration (round to two decimals) ?
A) 2.78 years
B) 3 years
C) 0.36 years
D) 1.94 years
Correct Answer:
Verified
Correct Answer:
Verified
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