A Corporate Bond Returns 12 Percent of Its Cost (In

question 57

Multiple Choice

A corporate bond returns 12 percent of its cost (in PV terms) in the first year,11 percent in the second year,10 percent in the third year and the remainder in the fourth year. What is the bond's duration in years?

• A)3.68 years
• B)2.50 years
• C)4.00 years
• D)3.75 years
• E)3.32 years

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Definitions:

A-delta Fibres

Myelinated nerve fibers primarily involved in the transmission of sharp, acute pain signals to the brain.

C fibres

Slow-conducting nerve fibers involved in transmitting thermal, mechanical, and chemical pain stimuli to the central nervous system.

Periaqueductal Fibres

These are neural pathways located in the periaqueductal gray matter of the brainstem, critical in modulating pain and defensive behavior.

Perceptual Experiences

Involve the interpretation and awareness of sensory information, allowing us to understand our environment through the senses.