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3) (a=0.5) standard deviation on the 6-yr bond price return 0.4202% Variance on the 6-yr bond price return 1.765x10% 1.223x10 % 2.406x 10% Variance on

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3) (a=0.5) standard deviation on the 6-yr bond price return 0.4202% Variance on the 6-yr bond price return 1.765x10% 1.223x10 % 2.406x 10% Variance on the 5-yr bond price return Here Volatility = Vvarince a var iance on the 7-yr bond price return

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