USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 101

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You are creating a portfolio that consists of the following two bonds. Bond A pays an annual 7 percent coupon, matures in two years, has a yield to maturity of 8 percent, and a face value of $1,000. Bond B pays an annual 8 percent coupon, matures in three years, has a yield to maturity of 9 percent, and a face value of $1,000.
-Refer to Exhibit 13.14. Calculate the Macaulay Duration for Bond B.

• A) 1.44
• B) 2.47
• C) 2.55
• D) 2.70
• E) 2.78

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Definitions:

Mindfulness Approach

A mental technique focusing on being intensely aware of what you're sensing and feeling in the moment, without interpretation or judgment.

Behavioral Techniques

Methods used in behavior therapy to change undesirable behaviors through conditioning and learning strategies.

Antipsychotic Medications

Drugs used in the treatment of psychiatric conditions, helping to manage symptoms of psychosis such as hallucinations and delusions.

Intensive Therapy

A therapeutic approach that involves multiple sessions per week or extended session times, designed to address and manage mental health issues more deeply and quickly.