Question: A ( $ 100 ) par value bond with 7 annual coupons and maturing at par in 3 years sells at a price to yield

$A \$ \\$ 100 \$ par value bond with \7 annual$

A \$ \\$ 100 \$ par value bond with \7 annual coupons and maturing at par in 3 years sells at a price to yield an annual effective interest rate of \i=5. Calculate the Modified Duration D of this bond. a) 1.50 b) 3.00 c) 2.68 d) 2.81 e) 2.95

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