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A Bond Has a Maturity of 12 Years and a Duration

question 20

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A bond has a maturity of 12 years and a duration of 9.5 years at a promised yield rate of 8%. What is the bond's modified duration?


Definitions:

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the word to oneself.

Long-Term Memory

A type of memory capable of storing an unlimited amount of information for periods ranging from a few days to a lifetime.

Recognition

The ability to identify previously encountered events, objects, or people.

Memory Revision

The process of altering or modifying memories, often involving the integration of new information or reinterpretation of existing memories.

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