The Duration of a 2 Year Annual 10% Bond That

question 56

Multiple Choice

The duration of a 2 year annual 10% bond that is selling for par is:

• A)1.00 years.
• B)1.91 years.
• C)2.00 years.
• D)2.09 years.
• E)None of the above.

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Definitions:

Consecutive Sundays

Two or more Sundays that follow one directly after the other without interruption.

Investor Liability

Refers to the legal and financial responsibilities borne by investors, including potential losses or debts incurred from investments.

Statutory Minimum

The lowest amount or level that is legally allowed, often referring to wages, working conditions, or environmental standards.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.