A bond has a maturity of 12 years,a duration of 9.5 years at a promised yield rate of 8%.What is the bond's modified duration?

Question

Quizplus · Accepted Answer

The modified duration can be calculated using the following formula: Modified Duration = Duration / (1 + Yield). Substituting the given values, we get Modified Duration = 9.5 / (1 + 0.08) = 8.8 years. Therefore, the correct answer is D) 8.8 years.

A Bond Has a Maturity of 12 Years,a Duration of 9.5