Calculate the Duration of a 4-Year $1,000 Face Value Bond

question 7

Multiple Choice

Calculate the duration of a 4-year $1,000 face value bond, which pays 8% coupons annually throughout maturity and has a yield to maturity of 9%.

• A) 3.29 years
• B) 3.58 years
• C) 3.69 years
• D) 3.89 years
• E) 4.00 years

Identify how financial statements feed into various analyses, including fundamental and technical analysis.

Acknowledge the importance of qualitative characteristics such as relevance and timeliness in financial information.

Understand the importance and characteristics of relevant financial information.

Recognize the impact of mispriced securities and the role of financial statements in identifying them.