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A two year coupon bond with a yield of 0.11 (continuously compounded) pays an 6.2%...

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Finance

A two year coupon bond with a yield of 0.11 (continuously compounded) pays an 6.2% coupon at the end of each year. Face value is $1000. Calculate the duration of the bond.

How did they calculate the correct answer?
Selected Answer:

1.41
Correct Answer:

1.94 0.1

Answer & Explanation Solved by verified expert
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