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What is the duration of a two-year maturity, $1,000 Treasury bond with a 3 percent

annual 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:

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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