A Bond Portfolio Consists of the Following Three Fixed-Rate Bonds

Multiple Choice

a bond portfolio consists of the following three fixed-rate bonds. assume annual coupon payments and no accrued interest on the bonds. Prices are per 100 of par value. $$\begin{array} { l r c c c c r } \text { Bond } & \text { Maturity } & \begin{array} { c } \text { Market } \\\text { Value }\end{array} & \text { Price } & \text { Coupon } & \begin{array} { c } \text { Yield-to- } \\\text { Maturity }\end{array} & \begin{array} { r } \text { Modified } \\\text { Duration }\end{array} \\\hline \text { A } & \text { 6 years } & 170,000 & 85.0000 & 2.00 \% & 4.95 \% & 5.42 \\\text { B } & 10 \text { years } & 120,000 & 80.0000 & 2.40 \% & 4.99 \% & 8.44 \\\text { C } & 15 \text { years } & 100,000 & 100.0000 & 5.00 \% & 5.00 \% & 10.38 \\\hline\end{array}$$ The bond portfolio's modified duration is closest to:

A) 7.62.
B) 8.08.
C) 8.20.