Calculate the Duration of a 4-Year $1,000 Face Value Bond,which

question 51

Multiple Choice

Calculate the duration of a 4-year $1,000 face value bond,which pays 8% coupons annually throughout maturity and has a yield to maturity of 9%.

• A) 3.29 years
• B) 3.57 years
• C) 3.69 years
• D) 3.89 years
• E) 4.00 years

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Definitions:

Devil's Advocate

A person who expresses a contentious opinion in order to provoke debate or test the strength of the opposing arguments.

Impartial

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The site of a failed invasion of Cuba by Cuban exiles supported by the U.S. in 1961, aiming to overthrow Fidel Castro's government.