A bond has a $1,000 par value and an 8 percent coupon rate. The bond has four years remaining to maturity and a 10 percent yield to maturity. This bond's modified duration is ____ years.
A) 1.33
B) 1.27
C) 3.24
D) 1.31
E) none of the above
Correct Answer:
Verified
Q65: Although the European debt crisis had substantial
Q65: When holding other factors constant, increased borrowing
Q66: Stephanie would like to purchase a bond
Q67: The _ was recently established to identify
Q68: To determine the present value of a
Q70: Because of a change in the required
Q71: The process by which higher credit risk
Q72: Julia just purchased a $1,000 par value
Q74: The required rate of return on a
Q74: An economic announcement signaling _ economic growth
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents