Third Duration Investments Has the Following Assets and Liabilities on Its

question 58

Multiple Choice

Third Duration Investments has the following assets and liabilities on its balance sheet. The two-year Treasury notes are zero coupon assets. Interest payments on all other assets and liabilities occur at maturity. Assume 360 days in a year.
-What is the duration of this bond?

• A)5 years.
• B)4.31 years.
• C)3.96 years.
• D)5.07 years.

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Definitions:

Change Management Process

A systematic approach to dealing with the transition or transformation of an organization's goals, processes, or technologies.

Double-Loop Learning

Double-Loop Learning is a process wherein an organization or individual questions and modifies its objectives, strategies, or beliefs in response to the results of actions.

Unfreezing

As the initial stage of organizational change, unfreezing involves the development of a shared understanding among stakeholders that a particular change is necessary.

Resistance To Organizational Change

The opposition or pushback by employees or stakeholders when an organization attempts to make significant changes to its structure or processes.