The duration of this cash flow is around, or a little under, 5 years. Thus, a 5-year

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The duration of this cash flow is around, or a little under, 5 years. Thus, a 5-year zero Treasury would be a reasonably good guess. You should not be using a 30-day, a 30-year, or even a 10-year Treasury. The 10-year Treasury would have too much of its payments as principal repayment at the end of its 10-year term.

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