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Consider a bond that promises the following cash flows. The yield to maturity is 12%....

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Accounting

Consider a bond that promises the following cash flows. The yield to maturity is 12%.

year 0 1 2 3 4
promised payments 160 160 170 180 230

You plan to buy this bond, hold it for 2.5 years, and then sell the bond.

Assuming all market interest rates are 12%, what is the duration of this bond?

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