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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Definitions:

U.S. Exports

Goods or services sent from the United States to other countries for sale or trade.

Federal Power

The authority held by the central or national government of a federal state, distinct from that of its constituent units.

Territory Acquisition

The process or act of obtaining new lands or jurisdictions, often through conquest, purchase, annexation, or inheritance.

Jefferson

Thomas Jefferson, an American Founding Father, the principal author of the Declaration of Independence (1776), and the third President of the United States (1801–1809), known for his contributions to the principles of democracy.