Using the Information Below, Which Bond Has the Greatest Money

question 22

Multiple Choice

Using the information below, which bond has the greatest money duration per 100 of par value assuming annual coupon payments and no accrued interest? $\begin{array} { l r c c c c } \hline \text { Bond } & \begin{array} { c } \text { Time-to- } \\\text { Maturity }\end{array} & \begin{array} { c } \text { Price Per } 100 \\\text { of Par Value }\end{array} & \text { Coupon Rate } & \begin{array} { c } \text { Yield-to- } \\\text { Maturity }\end{array} & \begin{array} { c } \text { Modified } \\\text { Duration }\end{array} \\\hline \text { A } & 6 \text { years } & 85.00 & 2.00 \% & 4.95 \% & 5.42 \\\text { B } & 10 \text { years } & 80.00 & 2.40 \% & 4.99 \% & 8.44 \\\text { C } & 9 \text { years } & 85.78 & 3.00 \% & 5.00 \% & 7.54 \\\hline\end{array}$

• A) bond a
• B) bond b
• C) bond C

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