A U.S. Government bond having a par value of $1,000, a coupon rate of 10 percent and a maturity of 10 years is being considered for purchase by an investor. The dealer selling the bond indicates that, based upon its price today, the bond has a yield to maturity of 12 percent. The bond's duration in years must be (to the nearest hundredths place) :
A) 7.35 years
B) 7.10 years
C) 6.85 years
D) 6.80 years
E) None of the above
Correct Answer:
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