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Today is 1 July, 2 0 1 9 . Camilla has a portfolio which consists of two different types of financial instruments ( henceforth referred

Today is 1 July, 2019. Camilla has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Camilla purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 22 units of instrument A and 22 units of instrument B.
Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029.
Instrument B is a Treasury bond with a coupon rate of j2=3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022.
What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume a yield rate of j2=2.99% p.a.
a.4.834 years
b.2.876 years
c.5.753 years
d.2.417 years
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