Question: Exhibit 13.12 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider two bonds: both pay annual interest. Bond C has a coupon of 6 percent

Exhibit 13.12 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider

Exhibit 13.12 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider two bonds: both pay annual interest. Bond C has a coupon of 6 percent per year, maturity of five years, yield to maturity of 6 percent per year, and a face value of $1,000. Bond D has a coupon of 8 percent per year, maturity of 15 years, yield to maturity of 6 percent per year, and a face value of $1,000. Refer to Exhibit 13.12. Calculate the modified duration for Bond C. a. 4.22 b. 4.34 c. 5 d. 5.34 e. 4.47 0-Icon Key

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