A bond has a Macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. What is the bond's modified duration?
A) 3.91 years
B) 4.39 years
C) 4.41 years
D) 4.46 years
E) 4.89 years
Correct Answer:
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