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A two year coupon bond with a yield of 0.06 (continuously compounded) pays an 1.5% coupon at the end of each year. Face value is

A two year coupon bond with a yield of 0.06 (continuously compounded) pays an 1.5% coupon at the end of each year. Face value is $1000. Calculate the duration of the bond.

Correct Answer:

1.98 0.1

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