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ABC has issued 5 year bonds to raise capital for expansion into new markets. The bonds pay coupons annually at an effective annual rate of
ABC has issued 5 year bonds to raise capital for expansion into new markets. The bonds pay coupons annually at an effective annual rate of 7% pa. The face amount of the bonds is $200,000 and they have an effective annual yield of 4%. Calculate the duration of the bonds in years, to 2 decimal places.
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