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Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j 2 = 3.105% p.a. and a face value
Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j2 = 3.105% p.a. and a face value of $100 that matures at par. The maturity date of this bond is 15 May 2023.
b) Calculate the modified duration of this Treasury bond. Assume the yield rate is j2 = 3.16% p.a. Give your answer in terms of years, rounded to four decimal places.
a.
2.9084
b.
2.8627
c.
1.4772
d.
1.4542
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