Calculate the Modified Duration of a Bond That Has a Macaulay

question 39

Multiple Choice

Calculate the modified duration of a bond that has a Macaulay duration of 7.6 and the bond pays interest semi-annually with a coupon rate of 6 percent and a required rate of return of 8 percent.

• A) 7.04
• B) 7.17
• C) 7.31
• D) 7.38
• E) 8.12

---

Definitions:

Professional Basketball

A sport played at the highest level by athletes who are paid for their performance, involving two teams competing to score points by throwing a ball into the opposing team's basket.

Reinforcement Schedule

A plan for determining the frequency and timing of reinforcing stimuli or rewards in order to maximize the desired behavior.

Skinner Box

An experimental apparatus used in behavioral psychology for studying and conditioning animal behavior through reinforcement and punishment.

Lever Pressing

Lever pressing is a behavior often studied in laboratory animals, where pressing a lever results in a reward or outcome, used in research on learning and conditioning.