Multiple Choice
The Arnold National Bank has a bond portfolio that consists of bonds with 5 years to maturity and a 9 percent coupon rate having a face value of $1,000.These bonds are selling in the market for $1,126.Coupon payments are made annually on this bond.
What is duration of these bonds?
A) 3.77 years
B) 4.23 years
C) 5 years
D) 9 years
E) None of the options is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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