Multiple Choice
A bond has a $1,000 par value and an 8 percent coupon rate. The bond has four years remaining to maturity and a 10 percent yield to maturity. This bond's modified duration is ____ years.
A) 1.33
B) 1.27
C) 3.24
D) 1.31
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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