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Question
The Arnold National Bank has a bond portfolio that consists of bonds with 5 years to maturity and a 9 percent coupon rate having a face value of $1,000. These bonds are selling in the market for $1,126. Coupon payments are made annually on this bond.
What is duration of these bonds?
A. 3.77 years
B. 4.23 years
C. 5 years
D. 9 years
E. None of the options is correct.
Answer
This answer is hidden. It contains 1 characters.
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