a. What is the duration of a two-year bond that pays an annual coupon of 11.5 percent and has a current yield to maturity of 13.5 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616))

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Q: .am.111.

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Q: D4) The one-year spot rate is 2.0%, the two-year spot rate is 2.8% and the three-year spot rate is…

A: Coupon Payment = Face Value x Coupon rate Price of the Bond= Present value of Coupon Payment +…

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Q: is the modified duration? (Do not

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Q: As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 8 years, the…

A: Face Value = fv = $1000Time = t = 8 YearsCoupon Rate = c = 7% Discount Rate = r = 19%

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Q: A3)

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