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You are estimating the interest rate risk of a 14 percent semiannual pay coupon with 6 years to maturity. The bond is currently trading at

You are estimating the interest rate risk of a 14 percent semiannual pay coupon with 6 years to maturity. The bond is currently trading at par. Using a 25 basis point change in yield the effective duration of the bond is closest to

A. 0.389

B. 0.397

C. 3.889

D. 3.970

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