Exhibit 19.9 Use the Information Below for the Following Problem(S)

Exhibit 19.9
Use the Information Below for the Following Problem(S)
Consider two bonds, both pay annual interest. Bond Y has a coupon of 6% per year, maturity of 5 years, yield to maturity of 6% per year, and a face value of $1000. Bond X has a coupon of 7% per year, maturity of 10 years, yield to maturity of 4% per year, and a face value of $1000.
-Refer to Exhibit 19.9.Calculate the modified duration for Bond Y.

A) 7.8
B) 4.22
C) 4.34
D) 7.5
E) 9.8