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$\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605$

Question 59

Multiple Choice

$\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605$ Consider a five-year, 8 percent annual coupon bond selling at par of $1,000.
-What is the duration of this bond?

A) 5 years.
B) 4.31 years.
C) 3.96 years.
D) 5.07 years.
E) Not enough information to answer.

[DA−DLk]=[0.955−0.354×(1,7101,730)]=[0.955−0.350]=0.605\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605[DA​−DL​k]=[0.955−0.354×(1,7301,710​)]=[0.955−0.350]=0.605

Multiple Choice

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$\left[ D _ { A } - D _ { L } k \right] = \left[ 0.955 - 0.354 \times \left( \frac { 1,710 } { 1,730 } \right) \right] = [ 0.955 - 0.350 ] = 0.605$

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