A Bond Has a Macaulay Duration of 5

question 57

Multiple Choice

A bond has a Macaulay duration of 5.5,a yield to maturity of 6.1 percent,a coupon rate of 7.0 percent,and semiannual interest payments.What is the bond's modified duration?

• A)4.59 years
• B)5.34 years
• C)5.92 years
• D)6.06 years
• E)6.26 years

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Definitions:

Personal Firewall

A firewall specifically designed for home networks.

Home Networks

A private network within a residence, connecting various digital devices to each other and to the internet.

Gray-hat Hacker

An individual who may violate ethical standards or laws, but without malicious intent, often to disclose vulnerabilities.

Black-hat Hacker

An individual who violates computer security for maliciousness or personal gain, as opposed to ethical purposes.