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# What is the duration of a two-year maturity, \$1,000 Treasury bond with a 3 percentannual coupon (interest)

rate, paid annually with a YTM of 2.30 percent? Assume that

interest is paid annually.

US Treasury rates may be found at:

https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield

Two-year Treasury Bond

Par value = Coupon = YTM = Maturity = annual payments

\$1,000 0.0300 0.0230 2

Time Cash Flow PVIF PV of CF PV*CF*V

1. \$________ .9775 \$________ \$_________

1. \$________ .9555 \$_________ \$_________

Price = \$________ \$__________

Duration =___________/ Price = _________ year

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