Calculate the Duration of a 4-Year $1,000 Face Value Bond,which

question 51

Multiple Choice

Calculate the duration of a 4-year $1,000 face value bond,which pays 8% coupons annually throughout maturity and has a yield to maturity of 9%.

• A) 3.29 years
• B) 3.57 years
• C) 3.69 years
• D) 3.89 years
• E) 4.00 years

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Definitions:

Natural Monopolies

A market situation where a single supplier is most efficient in providing goods or services due to high infrastructure or setup costs, making competition impractical.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Restraints of Trade

Activities or factors that limit or obstruct the free trade and competition between businesses within a market.