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Bond Terms Par Value $1,000 Duration (yrs) 4 Coupon 4.00% Frequency Semiannual Current rates: 4.75% Bond features: Callable at Par MACd 3.732 Modified Duration 3.645

Bond Terms

Par Value $1,000

Duration (yrs) 4 Coupon 4.00%

Frequency Semiannual Current rates: 4.75%

Bond features: Callable at Par

MACd 3.732

Modified Duration 3.645

Using the bond data above, what is the effective duration of the bond assuming a 1% increase in current interest rates? Round to two decimals

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