Question: Estimate the effective duration for a 22-year, USD note previously issued by Altria with a coupon of 4.50% (payable semiannual) priced to yield @ 3.75%.

Estimate the effective duration for a 22-year, USD note previously issued by Altria with a coupon of 4.50% (payable semiannual) priced to yield @ 3.75%. Shock annual yields +/- 1%. Use any par value desired.

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