# Lenora current holds a 10-year maturity bond. She decides to sell her bond at the end of her investment horizon,

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## Question:

Lenora current holds a 10-year maturity bond. She decides to sell her bond at the end of her investment horizon, which is before the maturity of the bond. The bond has a Macaulay duration of 7 years. Based on the What-if analysis results presented in the table below, is Lenora's investment horizon longer than the 7 years, less than 7 years, or equal to 7 years?

**Related Book For**

## Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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**Question Details**

Chapter #

**7**Section: CASE QUESTIONS

Problem: 1