$$\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605$$

question 59

Multiple Choice

$$\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605$$ Consider a five-year, 8 percent annual coupon bond selling at par of $1,000.
-What is the duration of this bond?

• A)5 years.
• B)4.31 years.
• C)3.96 years.
• D)5.07 years.
• E)Not enough information to answer.

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