Calculate the Duration of a 4-Year $1,000 Face Value Bond,which

question 51

Multiple Choice

Calculate the duration of a 4-year $1,000 face value bond,which pays 8% coupons annually throughout maturity and has a yield to maturity of 9%.

• A) 3.29 years
• B) 3.57 years
• C) 3.69 years
• D) 3.89 years
• E) 4.00 years

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Definitions:

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm cells, genetically similar like regular siblings.

Heritability Ratio

The Heritability Ratio is a measure in genetics quantifying how much of a trait's variation within a population is due to genetic factors.

Trait Variability

The degree to which individuals exhibit differences in their characteristics or behaviors.

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, influencing traits and susceptibility to certain diseases.