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Consider a five-year, 8 percent annual coupon bond selling at par of $1,000. What is the...

Consider a five-year, 8 percent annual coupon bond selling at par of $1,000. What is the duration of this bond? Show your work please

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Answer #1
YEAR Cash flows PVIF at 8% PV at 8% PV*Year/1000
1 80 0.92593 74.07 0.07
2 80 0.85734 68.59 0.14
3 80 0.79383 63.51 0.19
4 80 0.73503 58.80 0.24
5 1080 0.68058 735.03 3.68
1000.00 4.31
Duration = 4.31 years.
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