A Bond Matures in 30 Years, Has a 20 Year

question 69

Multiple Choice

A bond matures in 30 years, has a 20 year duration and a yield-to-maturity of 9.32%. The change in the level of the market interest rate is 0.47%. The modified duration is

• A) 27.44 years.
• B) 18.29 years.
• C) 9.4 years.
• D) 14.1 years.

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