Calculate the modified duration for a 10-year, 12% bond with a yield to maturity of 10% and a Macaulay duration of 7.2 years.
A) 6.43 years
B) 6.55 years
C) 6.79 years
D) 6.86 years
E) 7.01 years

Name: Calculate the modified duration for a 10-year, 12% bond with a yield to maturity of 10% and a Macaulay duration of 7.2 years. A) 6.43 years B) 6.55 years C) 6.79 years D) 6.86 years E) 7.01 years
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Quizplus · Accepted Answer

D_mod = 7.2/(1 + .10/2) = 7.2/1.05 = 6.86 years

Calculate the Modified Duration for a 10-Year, 12% Bond with a Yield