Calculate the Duration (Measured in Six-Monthly Periods)of a Bond with a Price

question 21

Multiple Choice

Calculate the duration (measured in six-monthly periods) of a bond with a price of $100,two years to maturity,and yield and coupon rates of 5% and 10% p.a.respectively.

• A) \( 3.65 \)
• B) \( 3.74 \)
• C) \( 3.79 \)
• D) \( 3.82 \)

---

Definitions:

Elderly

A term referring to individuals who are significantly beyond the middle age, often considered to be 65 years and older.

Secure Attachments

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and caring responses from caregivers in early childhood.

Siblings

Brothers or sisters; individuals having one or both parents in common.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by the development of language and symbolic thinking but limited in logical reasoning.