What is the duration of a two-year bond

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Question - a. What is the duration of a two-year bond that pays an annual coupon of 10.7 percent and has a current yield to maturity of 13.1 percent? Use $1,000 as the face value.

b. What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? Use $1,000 as the face value.

Reference no: EM133150877

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