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17. You have a 2% bond paying annual coupons, 3 years until maturity with $1000 face value. Yield to maturity is 2.5%. What is the

17. You have a 2% bond paying annual coupons, 3 years until maturity with $1000 face value. Yield to maturity is 2.5%. What is the duration of the bond? Show all calculations.

18. Suppose there is another bond which pays annual coupons of 5% and has 3 years to maturity with a $1000 face value. Yield to maturity is 2.5%. Is the duration of this bond higher or lower than the bond in question 17?

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