A bond has a Macaulay duration of 5.5,a yield to maturity of 6.1 percent,a coupon rate of 7.0 percent,and semiannual interest payments.What is the bond's modified duration?
A) 4.59 years
B) 5.34 years
C) 5.92 years
D) 6.06 years
E) 6.26 years
Correct Answer:
Verified
Q65: You own a bond that pays semiannual
Q69: Alaskan Motors has outstanding bonds that mature
Q77: Green Roofing Materials has 7.5 percent bonds
Q78: A $1,000 face value bond is selling
Q81: Identify and briefly explain four of Malkiel's
Q84: Phil owns a 7 percent,semiannual coupon bond
Q86: The outstanding bonds of Alpha Extracts have
Q94: A $1,000 face value bond has a
Q97: Jefferson-Smith bonds are quoted at a price
Q99: A bond has a modified duration of
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