Question: 6 ( 1 0 points total ) Consider a deferred interest bond with a face value of $ 1 0 0 0 , maturing in

6
(10 points total) Consider a deferred interest bond with a face value of $1000, maturing in exactly 10 years, with an annual yield to maturity of 9%. The coupon rate is 8% simple interest per year, with all interest accrued and paid at maturity.
a)(5 points) Calculate the bond's modified duration (in absolute value), and interpret what it means.

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