Exhibit 18.3 Use the Information Below for the Following Problem(S)

question 69

Multiple Choice

Exhibit 18.3
Use the Information Below for the Following Problem(S)
A $1000 par value bond with 4 years to maturity and a 5% coupon has a yield to maturity of 6%. Interest is paid annually.
-Refer to Exhibit 18.3.Calculate the modified duration for the bond.

• A) 3.51 years
• B) 3.61 years
• C) 3.72 years
• D) 4.38 years
• E) 7.44 years

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Definitions:

External Locus of Control

A belief system where individuals perceive their successes or failures to be a result of external factors or forces beyond their control.

Stress

A reaction of the body and mind to demanding or threatening situations, invoking a physiological and psychological response.

Internal Locus of Control

The belief that one has control over their life and outcomes, attributing success and failure to one's own efforts and abilities.

Life Satisfaction

A measure of how people evaluate their lives as a whole rather than their current feelings.