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1. Suppose that a bank grants a loan to one of its customers for a term of five years. The customer promises the bank an

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1. Suppose that a bank grants a loan to one of its customers for a term of five years. The customer promises the bank an annual interest payment of 10 percent (that is, $100 per year). The face (par) value of the loan is $1,000, which is also its current market value (price) because the loan's current yield to maturity is 10 percent. What is this loan's duration

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