Multiple Choice
An 8%, 30-year corporate bond was recently being priced to yield 10%. The Macaulay duration for the bond is 10.20 years. Given this information, the bond's modified duration would be
A) 8.05.
B) 9.44.
C) 9.27.
D) 11.22.
E) None of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Holding other factors constant, the interest-rate risk
Q15: Consider a four yearannual bond paying a
Q16: Consider a four year, zero-coupon bond, with
Q17: The duration of a par-valueannual bond with
Q18: The duration of a 15-year zero-coupon bond
Q20: The "modified duration" used by practitioners is
Q21: The duration of a par-value bond with
Q22: Holding other factors constant, which one of
Q23: Holding other factors constant, the interest-rate risk
Q24: Which of the following two bonds is