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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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