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

question 41

Multiple Choice

A $100 000 bond has a term to maturity of two years,with half-yearly coupons set at 4% p.a.Calculate the duration of the bond in periods if the yield is 5%.

• A) \( 3.714 \)
• B) \( 3.886 \)
• C) \( 3.827 \)
• D) \( 3.831 \)

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Definitions:

Control Group

In experimental research, the group that does not receive the treatment or intervention, serving as a comparison for measuring the effect of the treatment.

Experimenter Bias

The unintentional influence that a researcher can have on the results of a study, due to subjective expectations or desires regarding the outcome.

Self-Report Bias

A form of bias that occurs when respondents do not answer questions accurately due to misunderstanding, embarrassment, or deliberate falsehood.

Research Design

The overall strategy that outlines how to conduct research, defining how data is collected, measured, and analyzed.