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You are saving so that you can take your dream trip around the world in 5 years. To do so, you buy a newly issued,
You are saving so that you can take your dream trip around the world in 5 years. To do so, you buy a newly issued, 12-year, 8% annual coupon bond. The bond is purchased at par value, so its yield to maturity is 8% stated as an effective annual rate. You plan to liquidate the bond in 5 years so that you can pay for your trip. What is the duration gap in this scenario? Round your answer to three decimal places
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