The Duration of a 2 Year Annual 10% Bond That

question 16

Multiple Choice

The duration of a 2 year annual 10% bond that is selling for par is:

• A) 2.00 years
• B) 1.00 years
• C) 1.91 years
• D) 2.09 years

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Definitions:

Data Analysis

The process of examining, cleaning, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.

Observations

The act of carefully watching, listening, or noting phenomena as part of a research or study to gather information and insights.

Hypothesis

An assumption that is tested through research and experimentation.

Original Hypothesis

The initial theory or assumption that is made at the beginning of a research or experimental process, proposing a potential outcome.