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

question 16

Multiple Choice

A semiannual payment bond with a $1,000 par has a 7% quoted coupon rate, a 7% 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  [(t * CF_t/(1.035)^t)]/(2 * $1,000)

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Definitions:

December 31

Commonly used in finance and accounting to signify the end of the fiscal or calendar year.

Unadjusted Trial Balance

A preliminary list of all accounts and their balances used in financial reporting before adjustments are made for accruals and deferrals.

Adjusted

Modified or changed for a more accurate or fair representation.

Final Trial Balances

The summary of all ledger accounts after adjusting entries are made, used to prepare financial statements at the end of an accounting period.