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A Bond Has a Macaulay Duration of 5

Question 90

Multiple Choice

A bond has a Macaulay duration of 5.5, a yield to maturity of 6.2%, a coupon rate of 6.5%, and semiannual interest payments. What is the bond's modified duration?


A) 4.29 years
B) 4.39 years
C) 4.92 years
D) 5.33 years
E) 5.46 years

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