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aBC is required to pay $83900 in 3.3 years. ABC invests $17500 in a bond with a modified duration of 1.6 and $46800 in a

aBC is required to pay $83900 in 3.3 years. ABC invests $17500 in a bond with a modified duration of 1.6 and $46800 in a bond with a modified duration of X, to Reddington immunize its position against small changes in the yield rate.

The annual effective yield rate for each of the bonds is 11.3%. Find X.

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