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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Definitions:

Pay Penalties

Financial sanctions imposed on individuals or organizations for not adhering to contracts, laws, or regulations.

Unethical Practices

Actions or behaviors that do not conform to the accepted standards of moral or ethical principles in the conduct of business or individual activity.

Work Behavior

The actions and activities of employees or organizational members while at work, which can be influenced by various factors including corporate culture and individual ethics.

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Individuals who inspire, motivate, and potentially exert a strong personal influence on their followers through their personal vision, eloquence, or personal example.