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

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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Definitions:

Intersection Symbol

Generally represented by ∩, it denotes the common elements between two sets.

Union Symbol

In set theory, a symbol (∪) that denotes the union of two sets, meaning it combines all the elements from both sets, excluding duplicates.

Absolute Value Equation

An equation that contains an absolute value expression, requiring consideration of both the positive and negative cases to find solutions.

Linear Equations

Equations of the first degree, meaning they involve only the first power of the variable(s).