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Nairobi Commercial Bank Ltd holds a two-year treasury bonds whose face value is shs 1,000,000. The annual coupon rate is 8% and the coupon

Nairobi Commercial Bank Ltd holds a two-year treasury bonds whose face value is shs 1,000,000. The annual coupon rate is 8% and the coupon interest is paid semiannually. If the annual yield to maturity is 12%, calculate the duration of the treasury bonds. (9 marks)

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