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A corporate bond returns 10 percent of its cost (in present value terms) in the first year, 9 percent in the second year, 8 percent
A corporate bond returns 10 percent of its cost (in present value terms) in the first year, 9 percent in the second year, 8 percent in the third year, and the remainder in the fourth year. What is the bond's duration in years?
3.75 years | ||
4.00 years | ||
3.44 years | ||
3.98 years | ||
3.32 years |
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