A 10%,30-year corporate bond was recently being priced to yield 12%.The Macaulay duration for the bond is 11.3 years.Given this information,the bond's modified duration would be

Name: A 10%,30-year corporate bond was recently being priced to yield 12%.The Macaulay duration for the bond is 11.3 years.Given this information,the bond's modified duration would be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Modified duration = Macaulay duration / (1 + yield) 
= 11.3 / (1 + 0.12) 
= 10.09

A 10%,30-Year Corporate Bond Was Recently Being Priced to Yield