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) \( 3.82 \)

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Definitions:

Five Motivation Levels

A hierarchical model that outlines the progression of human needs, from basic physical necessities to self-actualization.

Physical Decline

The gradual loss of physical capabilities and functions that occurs as part of the aging process.

Social Need

A requirement for belonging and acceptance within a group or society, influencing human behavior and motivation.

Survival

The act of continuing to live or exist, especially under challenging conditions.