A Bond Has a Macaulay Duration of 5

question 90

Multiple Choice

A bond has a Macaulay duration of 5.5, a yield to maturity of 6.2%, a coupon rate of 6.5%, and semiannual interest payments. What is the bond's modified duration?

• A)4.29 years
• B)4.39 years
• C)4.92 years
• D)5.33 years
• E)5.46 years

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