USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 50

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider two bonds: both pay annual interest. Bond C has a coupon of 6 percent per year, maturity of five years, yield to maturity of 6 percent per year, and a face value of $1000. Bond D has a coupon of 8 percent per year, maturity of 15 years, yield to maturity of 6 percent per year, and a face value of $1000.
-Refer to Exhibit 13.12. Calculate the modified duration for Bond C.

• A) 4.47
• B) 4.22
• C) 4.34
• D) 5
• E) 5.34

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Definitions:

Diatoms

Single-celled, photosynthetic protists with a two-part silica shell.

Amoebozoans

A group of amoeboid protozoa, including amoebas, characterized by their ability to change shape due to the movement of their pseudopodia.

Dictyostelium

A genus of slime molds that are used as model organisms in molecular biology and genetics.

Mitochondria

The organelles within cells that generate most of the cell's supply of ATP, used as a source of chemical energy, and involved in a range of other processes including signaling and cellular differentiation.