Calculate the Duration of a 6 Percent, $1,000 Par Bond

question 65

Multiple Choice

Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10 percent and interest is paid semiannually.

• A) 1.35 years
• B) 1.78 years
• C) 2.50 years
• D) 2.78 years
• E) 2.95 years

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