Calculate the Duration of a $1,000 Face Value Bond with Annual

question 23

Multiple Choice

Calculate the duration of a $1,000 face value bond with annual coupon payments,a coupon rate of 7 percent,a maturity of 4 years,and a yield to maturity of 8.2 percent.

• A)3.49 years
• B)3.62 years
• C)3.69 years
• D)3.81 years
• E)3.74 years

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Definitions:

Heredity

Heredity refers to the transmission of genetic characteristics from parents to offspring through the genes, influencing traits such as physical appearance, personality, and health.

Perceiving

The process of becoming aware of something through the senses.

Physical Maturation

Physical maturation is the process of bodily growth and development, culminating in full physical adulthood.

Teratogens

Agents or factors that can cause malformation or birth defects in an embryo or fetus when exposed during pregnancy.