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“U.S. Treasury and Agency Securities.” =181,248,000 Use this amount and assume these investments are recorded at...

  1. “U.S. Treasury and Agency Securities.” =181,248,000

Use this amount and assume these investments are recorded at face value. Now, assume the following characteristics and calculate the duration of these investments. Explain the meaning of duration and your duration calculation.

  • 2.50% Coupon Rate
  • Coupons Paid Semi-Annually
  • 7 years to maturity
  • For YTM=1.85

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