A Bond Matures in 30 Years, Has a 20 Year

question 97

Multiple Choice

A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The market interest rate has increased by 0.47%. The modified duration is

• A) 9.4 years.
• B) 14.1 years.
• C) 18.29 years.
• D) 27.44 years.

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Definitions:

Interdependence

A mutual reliance between two or more groups or individuals, where each party's welfare and benefits are reciprocally dependent upon the others'.

Mutuality

Partners’ acknowledgment that their lives are intertwined and thinking of themselves as a couple (“us”) instead of as two separate individuals (“me” and “you”).

Parasocial Relationship

A type of one-sided relationship where an individual becomes attached to a media persona or character without any reciprocal interaction.

Commitment

Partners’ investment of time, effort, and resources in their relationship, with the expectation that it will continue indefinitely.