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A 10-year zero-coupon bond is callable annually at par its

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Reference no: EM13568825

A 10-year zero-coupon bond is callable annually at par (its face value) starting at the beginning of year six. Assume a flat yield curve of 10%. What is the bond duration?

A. 5 years

B. 7.5 years

C. 10 years

D. Cannot be determined based on the data given

Reference no: EM13568825

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