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

question 77

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 D.

• A) 9.5
• B) 9.8
• C) 9.2
• D) 15
• E) None of the above

---

Definitions:

Angiotensin I

Peptide derived when renin acts on angiotensinogen.

Renin

An enzyme secreted by the kidneys that plays a crucial role in the body's regulation of blood pressure.

Angiotensin II

A peptide hormone that causes blood vessels to constrict and blood pressure to increase, part of a vital mechanism regulating blood pressure.

Vasoconstriction

The constriction of blood vessels, which increases blood pressure.