Exhibit 18.2 Use the Information Below for the Following Problem(S)

question 97

Multiple Choice

Exhibit 18.2
Use the Information Below for the Following Problem(S)
Talmart Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6 percent for these bonds.
-Calculate the modified duration of a bond that has a Macaulay duration of 7.6 and the bond pays interest semi-annually with a coupon rate of 6% and a required rate of return of 8%.

• A) 7.04
• B) 7.17
• C) 7.31
• D) 7.38
• E) 8.12

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Definitions:

Work Groups

Teams within an organization designed to collaborate on projects or specific tasks.

Large Bank

A financial institution that possesses a significant amount of assets, operates on a wide scale, and offers a comprehensive range of banking services.

Servant Leaders

Leaders who prioritize the needs of their team or employees, focusing on serving them, fostering a supportive environment, and facilitating their growth and performance.

Empowering Leader

A leadership style characterized by giving team members autonomy, resources, and encouragement to make decisions and innovate.