Consider a Security with a Face Value of $100 000

question 52

Multiple Choice

Consider a security with a face value of $100 000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 9 per cent p.a. and coupon payments are made semi-annually. The current discount rate is 12 per cent p.a. What is the security's duration (round your answer to two decimals) ?

• A) 2.68 years
• B) 2.68 half-years
• C) 3 years
• D) 0.38 years

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Definitions:

Visual Cortex

The part of the cerebral cortex responsible for processing visual information, located in the occipital lobe of the brain.

Freudian

Pertains to Sigmund Freud's psychoanalytic theories, centering on unconscious desires, childhood experiences, and defense mechanisms influencing behavior and personality.

Widely Popular

Something that is liked, admired, or supported by a large number of people.

Neurosis

A broad category used in the past to describe a variety of mental health conditions characterized by emotional distress but not severe enough to impair cognition or perception of reality.