A $100 000 Bond Has a Term to Maturity of Two

question 9

Multiple Choice

A $100 000 bond has a term to maturity of two years,with half-yearly coupons set at 13% p.a.Calculate the duration of the bond in periods if the yield is 9%.

• A) \( 3.659 \)
• B) \( 3.731 \)
• C) \( 3.812 \)
• D) \( 3.825 \)

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