USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 61

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 D.

• A) 9.5
• B) 9.8
• C) 9.2
• D) 15
• E) 17

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