A Bond's Macaulay Duration Is 7

question 32

Multiple Choice

A bond's Macaulay duration is 7.95 years. If the current annual interest rate is 7%, what is the modified duration of this bond?

• A) 7.00 years
• B) 7.88 years
• C) 7.43 years
• D) 7.95 years
• E) 8.51 years

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Definitions:

Catholic Church

The largest Christian church, led by the Pope, emphasizing sacramental worship and the doctrine of apostolic succession.

Latin Bible

The collection of biblical texts originally written in Hebrew, Aramaic, and Greek, translated into Latin, known as the Vulgate, which was the standard Bible of Western Christianity for many centuries.

Cultural Capital

denotes the non-financial social assets that promote social mobility beyond economic means, such as education, intellect, style of speech, or dress.

Highbrow Tastes

Preferences for cultural products, activities, or interests considered intellectual, sophisticated, or of high quality.