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Suppose that all investors expect that interest rates for the 4 years will be as in the table below. Year Forward Interest Rate (Today) 0

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Suppose that all investors expect that interest rates for the 4 years will be as in the table below. Year Forward Interest Rate (Today) 0 6% 7% 9% 10% fa 3-year zero-coupon bond with a par value of $1,000? b) What is the duration of a par-value bond with a coupon rate of 8.7% and a remaining time to maturity of 6 years? The payments are made annually

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