A seven-year par value bond has a coupon rate of 9% and a modified duration of

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The modified duration of a bond is calculated as the Macaulay duration divided by (1 + yield per period). Given the bond's coupon rate and assuming a yield close to the coupon rate, the modified duration is typically less than the Macaulay duration, which is the bond's weighted average time to receive cash flows. The closest value to a typical modified duration for a 7-year bond with a 9% coupon is 5.03 years.

A Seven-Year Par Value Bond Has a Coupon Rate of 9