Multiple Choice
A bond has a face value of $1,000 and coupon payments of $120 annually.This bond matures in three years and is selling in the market for $1,160.Market interest rate is 6 percent.What is this bond's duration?
A) 3 years
B) 5.71 years
C) 1.96 years
D) 2.71 years
E) None of the options is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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