Question $3$

$9$ pts

Assume we have a $15$ year $10\mathrm{.}23\%$ coupon bond selling for $$1,000$ and callable

at par with semi$-$annual compounding. What would be the effective duration if

the interest rates could change by $50$ basis points $($annually$)?$ Please enter your

answer to the nearest hundredth $($in other words if you calculate a duration of

$1\mathrm{.}23456$ years, you must enter at least $1\mathrm{.}23).$