A 6%, 30-year corporate bond was recently being priced to yield 8%. The Macaulay duration for the bond is 8.4 years. Given this information, the bond's modified duration would be
A) 8.05.
B) 9.44.
C) 9.27.
D) 7.78.
Correct Answer:
Verified
Q51: The duration of a 15-year zero-coupon bond
Q53: Consider a bond selling at par with
Q58: Holding other factors constant, which one of
Q60: The curvature of the price yield curve
Q61: The duration of a perpetuity with a
Q63: The duration of a par-value bond with
Q64: The duration of a perpetuity with a
Q65: Consider a bond selling at par with
Q69: Par-value-bond GE has a modified duration of
Q74: Which of the following bonds has the
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