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Calculate the Modified Duration of a Bond That Has a Macaulay

Question 39

Multiple Choice

Calculate the modified duration of a bond that has a Macaulay duration of 7.6 and the bond pays interest semi-annually with a coupon rate of 6 percent and a required rate of return of 8 percent.


A) 7.04
B) 7.17
C) 7.31
D) 7.38
E) 8.12

Correct Answer:

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