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What the duration gap at the time of purchase is closest to

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Problem 1: An investor purchases an annual coupon bond with a 7% coupon rate and exactly 7 years remaining until maturity at a price of 101 per 100 par. The investor's investment horizon is 5 years. The approximate modified duration of the bond is 6.50. The duration gap at the time of purchase is closest to:

Reference no: EM132999930

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