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Consider a 5%-coupon bond with a face value of $1,000 and a remaining maturity of 2 years. The bond pays coupons annually, so there are
Consider a 5%-coupon bond with a face value of $1,000 and a remaining maturity of 2 years. The bond pays coupons annually, so there are two remaining payments. What is the duration of the bond if the yield-to-maturity is 10%? Pick the answer that is closest.
2.00
1.95
1.90
1.85
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