An 8%, 30-Year Corporate Bond Was Recently Being Priced to Yield

question 83

Multiple Choice

An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

• A)8.05.
• B)9.44.
• C)9.27.
• D)11.22.
• E)None of the options

Calculate and understand the concept of the present value of future money.

Identify different views on competition and entrepreneurship in profit theories.

Relate the concept of usury laws to interest rates and their impact on borrowers and lenders.

Understand the economic and ethical arguments surrounding the rent of land.

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Definitions:

Designated Groups

Categories of people identified for special consideration or protection under laws or policies, often related to employment equity.

Valuable

Describes something that holds great worth or importance, often due to its utility, rarity, or contribution towards achieving a goal.

Organized

Having a structured and systematic arrangement; often refers to entities or groups that are systematically coordinated, such as labor unions.

Efficient

The ability to achieve maximum productivity with minimum wasted effort or expense, often related to processes, systems, or machines.