0 What Is the Modified Duration of a Bond with a Coupon

question 87

Multiple Choice

0. What is the modified duration of a bond with a coupon rate of 7.5 percent, and a yield to maturity of 8.2 percent? This bond pays interest semiannually. It has a Macaulay duration of 6.7 years.

• A) 4.27 years
• B) 6.83 years
• C) 6.44 years
• D) 5.71 years
• E) 6.04 years

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Definitions:

Epidemiologist

A public health professional who investigates patterns and causes of diseases and injuries in humans.

Incubation Period

The time between exposure to a pathogen and the appearance of the first symptoms.

Infectious Disease

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi, that can be spread directly or indirectly from one person to another.

Clinical Illness

A condition characterized by a set of symptoms and signs experienced by patients, requiring medical treatment and care.