An 8%, 30-Year Corporate Bond Was Recently Being Priced to Yield

question 10

Multiple Choice

An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

• A)8.05.
• B)9.44.
• C)9.27.
• D)11.22.

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Definitions:

Basic Units

Fundamental components or building blocks that form the basis of a complex structure or system.

Sociocultural Psychologists

Professionals in psychology who examine how social and cultural factors influence human behavior and mental processes.

The Mind

The set of cognitive faculties that encompasses consciousness, perception, thinking, judgement, and memory.

Experimental Group

The group in an experiment that receives the variable being tested, as opposed to the control group which does not.