A Bond Has a Maturity of 12 Years and a Duration

question 20

Multiple Choice

A bond has a maturity of 12 years and a duration of 9.5 years at a promised yield rate of 8%. What is the bond's modified duration?

• A) 12 years
• B) 11.1 years
• C) 9.5 years
• D) 8.8 years

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Definitions:

Metaphors

Figurative language used to represent a concept or an object by referring to another concept or object with similar characteristics.

Analogies

Analogies are comparisons between two things that highlight similarities, often used to explain or clarify concepts.

Parables

Simple stories used to illustrate a moral or spiritual lesson, as told by Jesus in the Gospels.

Storytelling

The art of conveying messages, values, or information through narrative and story, used in various contexts including marketing and leadership.