Multiple Choice
A bond has a face value of $1,000 and coupon payments of $80 annually.This bond matures in three years and is selling for $1,000 in the market.Market interest rate is 8 percent.What is this bond's duration?
A) 3 years
B) 2.78 years
C) 1.95 years
D) 4.31 years
E) None of the options is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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