The Price of a Bond Decreased by 1

question 4

Multiple Choice

The price of a bond decreased by 1.45% in response to an increase in the yield to maturity from 7.2% to 7.6%. What is the bond's Macaulay duration?

• A)3.39 years
• B)3.76 years
• C)3.92 years
• D)4.04 years
• E)4.16 years

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