Consider a Security with a Face Value of $100 000

question 16

Multiple Choice

Consider a security with a face value of $100 000 to be repaid at maturity.The maturity of the security is three years.The coupon rate is 9% per annum and coupon payments are made semi-annually.The current discount rate is 12% per annum.What is the security's duration (round your answer to two decimals) ?

• A)2.68 years
• B)2.68 half-years
• C)3 years
• D)0.38 years

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