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    Principles of Corporate Finance Study Set 3
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    Exam 3: Valuing Bonds
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    A Bond with Duration of 5
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A Bond with Duration of 5

Question 19

Question 19

Multiple Choice

A bond with duration of 5.7 years has a yield to maturity of 9 percent. The bond's volatility (modified duration) is


A) 1.9 percent.
B) 5.2 percent.
C) 5.7 percent.
D) 9.0 percent.

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