A 6%, 30-Year Corporate Bond Was Recently Being Priced to a Yield

question 57

Multiple Choice

A 6%, 30-year corporate bond was recently being priced to a yield of 7%. The Macaulay duration for the bond is 9.4 years. Given this information, the bond's modified duration would be

• A) 9.55.
• B) 9.24.
• C) 8.79.
• D) 7.78.

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