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4. A) General Motor bonds have an 8% coupon rate, pay coupon payment semi-annually, and will mature in exactly 3 years. The yield to maturity

4.

A) General Motor bonds have an 8% coupon rate, pay coupon payment semi-annually, and will mature in exactly 3 years. The yield to maturity of the bond is 6%. What is the duration of the bond?

B) Six flags issued a zero-coupon bond with 7 years to maturity. The yield to maturity is 5%. What is the duration of the bond?

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