Question: Question 5 1 pts Consider a three-year 4% coupon bond with a face value of $1000 and semiannual payments. The yield on the bond is

Question 5 1 pts Consider a three-year 4% coupon bond with a face value of $1000 and semiannual payments. The yield on the bond is 15% per annum with continuous compounding. What's the duration of the bond in number of years? Hint: You need the bond price to calculate the Duration. To calculate the bond price, you can first find the six-month rate equivalent to the 15% continuously compounded rate, then calculate the present value of the cash flows like an ordinary annuity using the six-month rate.)

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