Multiple Choice
Calculate the modified duration of a two-year corporate loan paying 6 percent interest annually.The $40,000,000 loan is 100 percent amortizing, and the current yield is 9 percent annually.
A) 2 years.
B) 1.91 years.
C) 1.94 years.
D) 1.49 years.
E) 1.36 years.
Correct Answer:
Verified
Correct Answer:
Verified
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