Question: What are the key rate durations and total effective duration for a two-year annual-paying bond given the following data? (Assume equal weighting for each year).

What are the key rate durations and total effective duration for

What are the key rate durations and total effective duration for a two-year annual-paying bond given the following data? (Assume equal weighting for each year). What does this duration represent relative to a bond with a duration of 5? Year 1 Year 2 High Price 101.63 102.75 Low Price 99.79 101.24 Current Price 100.50 102.00 ACurve 25bps 17bps What are the key rate durations and total effective duration for a two-year annual-paying bond given the following data? (Assume equal weighting for each year). What does this duration represent relative to a bond with a duration of 5? Year 1 Year 2 High Price 101.63 102.75 Low Price 99.79 101.24 Current Price 100.50 102.00 ACurve 25bps 17bps

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