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An investor with an investment horizon of 1.4 year(s) purchases a 5% coupon bond with 2 years to maturity and a face value of $100.
An investor with an investment horizon of 1.4 year(s) purchases a 5% coupon bond with 2 years to maturity and a face value of $100. The bond is trading at a yield of 7%. Coupons are paid semi-annually. What is this investor's duration gap?
Assume semi-annual compounding. Round your answer to 4 decimal places.
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