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. Example: Calculate the duration of an 8% coupon bond (annual coupon payment) t hat has three years to maturity. Interest rate is assumed to

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. Example: Calculate the duration of an 8% coupon bond (annual coupon payment) t hat has three years to maturity. Interest rate is assumed to be 10%. . Steps: . Bond price = ? Weights (w1,W2 and wz) = ? - Duration = ? How does it compare with a three-year zero-coupon bond

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