A Bond Has a Macaulay Duration of 4

question 46

Multiple Choice

A bond has a Macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. What is the bond's modified duration?

• A)3.91 years
• B)4.39 years
• C)4.41 years
• D)4.46 years
• E)4.89 years

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