9-109 What Is the Duration of the Above Treasury Note

question 73

Multiple Choice

9-109 What is the duration of the above Treasury note? Use the asked price to calculate the duration.Recall that Treasuries pay interest semiannually.

• A)3.86 years.
• B)1.70 years.
• C)2.10 years.
• D)1.90 years.
• E)3.40 years.

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Definitions:

Median Voter

A theoretical concept that suggests policies will be made in favor of the preferences of the median voter when voters have diverse opinions.

Voter Preferences

The individual choices or inclinations of voters towards candidates, political parties, or policy issues, which guide their decisions in elections.

Special-Interest Effect

The phenomenon where policy decisions disproportionately benefit a small, particular group at the expense of the general public.