Exhibit 19.8 Use the Information Below for the Following Problem(S)

question 62

Multiple Choice

Exhibit 19.8
Use the Information Below for the Following Problem(S)
Consider two bonds, both pay annual interest. Bond C has a coupon of 6% per year, maturity of 5 years, yield to maturity of 6% per year, and a face value of $1000. Bond D has a coupon of 8% per year, maturity of 15 years, yield to maturity of 6% per year, and a face value of $1000.
-Refer to Exhibit 19.8.Calculate the modified duration for Bond C.

• A) 4.47
• B) 4.22
• C) 4.34
• D) 5
• E) None of the above

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Definitions:

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Distant Past

A term referring to a time that is far back in history, often beyond living memory or historical documentation.

Sensory Register

The initial stage of memory, where sensory information is stored for a very brief period.

Distractor Studies

Research methods that involve using irrelevant stimuli or information to examine how attention is diverted or focused during a task.