Exhibit 18.2 Use the Information Below for the Following Problem(S)

question 97

Multiple Choice

Exhibit 18.2
Use the Information Below for the Following Problem(S)
Talmart Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6 percent for these bonds.
-Calculate the modified duration of a bond that has a Macaulay duration of 7.6 and the bond pays interest semi-annually with a coupon rate of 6% and a required rate of return of 8%.

• A) 7.04
• B) 7.17
• C) 7.31
• D) 7.38
• E) 8.12

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Definitions:

Female Instructors

Refers to educators or teachers who identify as female and are involved in the process of teaching or instruction.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

Outgroup Homogeneity Effect

The perception that members of an outgroup are more similar to each other than they actually are, often leading to stereotyping.

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Having a resemblance or likeness, often referring to characteristics or qualities that are common between entities.