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A Bond Is Scheduled to Mature in Five Years

Question 109

Multiple Choice

A bond is scheduled to mature in five years.Its coupon rate is 9 percent with interest paid annually.This $1,000 par value bond carries a yield to maturity of 10 percent.What is the duration of the bond?


A) 4.677 years.
B) 5.000 years.
C) 4.674 years.
D) 4.328 years.
E) 4.223 years

Correct Answer:

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