Question: A five-year bond with yield 11% (continuously compounded) pays an 8% coupon at the end of each year. What is the duration of the bond?

A five-year bond with yield 11% (continuously compounded) pays an 8% coupon at the end of each year. What is the duration of the bond?

Select one:

a.

4.356

b.

4.256

c.

4.156

d.

4.056

e.

None of the above

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