An 8 percent, 20-year corporate bond is priced to yield 9 percent. The Macaulay duration for this

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An 8 percent, 20-year corporate bond is priced to yield 9 percent. The Macaulay duration for this bond is 8.85 years. Given this information, how many years is the bond’s modified duration?

a. 8.12

b. 8.47

c. 8.51

d. 9.25.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

Question Posted: Dec 29, 2023 10:03 PM

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An 8 percent, 20-year corporate bond is priced to yield 9 percent. The Macaulay duration for this

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The answer is b 847 Heres the calculation Modified duration is a version of Macaulay duration ...View the full answer

Fundamentals Of Investments Valuation And Management

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