The Duration of a Par Value Bond with a Coupon

question 56

Multiple Choice

The duration of a par value bond with a coupon rate of 8.7% and a remaining time to maturity of 6 years is

• A)6.0 years.
• B)5.1 years.
• C)4.27 years.
• D)3.95 years.
• E)None of the options

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Definitions:

Dollar-Denominated Assets

Financial assets that are valued in U.S. dollars, regardless of where they are located or who owns them.

Real Value

The value of an asset, product, or service, adjusted for inflation, reflecting its purchasing power and true cost over time.

Dollar-Denominated Assets

Financial assets such as stocks, bonds, or real estate investments that are valued in U.S. dollars.

Real Value

Real value refers to the worth of a good or service taking into account inflation, providing a more accurate measure over time.