USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 8

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A $1000 par value bond with four years to maturity and a 5 percent coupon has a yield to maturity of 6 percent. Interest is paid annually.
-Refer to Exhibit 13.3. Calculate the modified duration for the bond.

• A) 3.51 years
• B) 3.61 years
• C) 3.72 years
• D) 4.38 years
• E) 7.44 years

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Definitions:

Cognitive Confusion

A state of mental disarray or lack of clarity in thought processes, often resulting from conflicting information or overload.

Deviance

Behaviors or actions that violate societal norms or values, which can encompass both criminal and non-criminal acts depending on the context.

Personal Distress

A negative emotional response, such as anxiety or fear, that stems from perceiving another person's suffering or from being in a stressful situation oneself.

Cognitive Confusion

A state of being perplexed or unclear, often resulting from a disruption in one’s mental faculties or the presence of conflicting thoughts and feelings.