A Semiannual Payment Bond with a $1,000 Par Has a 7

question 26

Multiple Choice

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate,a 7 percent promised YTM,and 10 years to maturity. What is the bond's duration?

• A)10.00 years
• B)8.39 years
• C)6.45 years
• D)5.20 years
• E)7.35 years

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Definitions:

Demand Data

Information related to the desire for and consumption of goods or services, used for analysis in business strategy and planning.

Seasonal Pattern

A cyclical pattern in data that repeats at regular intervals over a year, often observed in sales, weather, and economic data.

Time Series

A series of data points, generally comprising consecutive observations taken across a period of time.

Forecast

A prediction about future events or trends, often based on historical data and analysis, used in planning and decision-making processes.