The Duration of a Par Value Bond with a Coupon

question 27

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 above.

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Definitions:

Physical Count of Inventory

The manual process of counting all the physical goods a company has in stock at a specific time.

Safeguarding Inventory

Measures and policies implemented to protect company inventory from theft, damage, and other losses.

Physical Devices

Tangible pieces of hardware that are used for specific functions, often within technological or manufacturing settings.

Inventory Turnover

The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.