Exhibit 19.8 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Consider two bonds, both pay annual interest. Bond C has a coupon of 6% per year, maturity of 5 years, yield to maturity of 6% per year, and a face value of $1000. Bond D has a coupon of 8% per year, maturity of 15 years, yield to maturity of 6% per year, and a face value of $1000. Both are annual bonds.

5. Refer to Exhibit 19.8. Calculate the modified duration for Bond C.

a. 4.47

b. 4.22

c. 4.34

d. 5

e. None of the above

6. Refer to Exhibit 19.8. Calculate the modified duration for Bond D.

a. 9.5

b. 9.8

c. 9.2

d. 15

e. None of the above