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:

Coordination

The process of organizing people or groups so that they work together properly and well, essential for achieving goals and efficiently managing resources.

Flexibility

The ability of an organization or individual to adapt to changes and new demands in their environment effectively.

Planning

The process of outlining a sequence of actions to achieve specific goals or objectives.

Analyzing Action Alternatives

The process of assessing different possible actions to determine which would be most effective in achieving desired objectives.