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NEW QUESTION: 1
Section B (2 Mark)
As a CWM you are considering the following bond for inclusion in the fixed income portfolio of your client:
What will be the duration of this bond? and What will be the effect of the changes on the duration of the bond if the coupon rate is 6% rather than 9%?
A. 7.012 Years, Decrease
B. 7.33 years, Decrease
C. 6.031 years, Increase
D. 8 years, Increase
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