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7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively. (a) Compute their durations. (b) What can you

7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively.

(a) Compute their durations. (b) What can you conclude about the relationship between duration and coupon?

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