Question: Consider a $1,000 par value bond that has a 6% coupon rate, pays a semi-annual coupon, matures 20 years from today and is priced at

Consider a $1,000 par value bond that has a 6% coupon

Consider a $1,000 par value bond that has a 6% coupon rate, pays a semi-annual coupon, matures 20 years from today and is priced at $893.22 to yield 7%. If the yield is increased by 10 basis points to 7.1% the price is $883.45. If the yield is decreased by 10 basis points to 6.9% the price is $903.15. Calculate the approximate (effective) duration for this bond. O 16.55 08.28 O 5.52 O 22.06 11.03

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