Exhibit 19.8 Use the Information Below for the Following Problem(S)

question 77

Multiple Choice

Exhibit 19.8
Use the Information Below for the Following Problem(S)
Consider two bonds, both pay annual interest. Bond C has a coupon of 6% per year, maturity of 5 years, yield to maturity of 6% per year, and a face value of $1000. Bond D has a coupon of 8% per year, maturity of 15 years, yield to maturity of 6% per year, and a face value of $1000.
-Refer to Exhibit 19.8.Calculate the modified duration for Bond D.

• A) 9.5
• B) 9.8
• C) 9.2
• D) 15
• E) None of the above

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Definitions:

Heavy-duty Ball Hitch

A robust towing hitch designed for connecting and towing large trailers or loads with a vehicle, characterized by its ball-and-socket connection.