Compute the Duration of an 8%, 5-Year Corporate Bond with a Par

question 26

Multiple Choice

Compute the duration of an 8%, 5-year corporate bond with a par value of $1,000 and yield to maturity of 10%.

• A) 3.92
• B) 4.28
• C) 4.55
• D) 5

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Definitions:

Mortality

The state of being subject to death; often used in statistics to refer to the death rate within a population.

Sex Characteristic

Traits associated with male or female bodies that are not directly linked to reproduction, such as breast development in females or facial hair in males.

Gender Characteristic

Traits or attributes traditionally associated with a particular gender, including roles, behaviors, activities, expectations, and expressions.

Women's Health

A field of medicine and public health that focuses on conditions and diseases that specifically affect women, as well as approaches to improve women's health and well-being.