Question: Question 3 1/1 pts Consider a bond with a par value of $1000. It has a coupon rate of 8% which equals the yield to

Question 3 1/1 pts Consider a bond with a par value

Question 3 1/1 pts Consider a bond with a par value of $1000. It has a coupon rate of 8% which equals the yield to maturity. When we use the modified duration rule to estimate the price change of this bond, we find that the bond experiences a price change of $46 when the required yield changes by 80 basis points. Which of the following statements is true? The bond has a Macaulay duration of 4.60 years The bond has a Macaulay duration of 5.12 years Correct! The bond has a Macaulay duration of 6.21 years The bond has a Macaulay duration of 7.37 years A bond has a Macaulay duration of 5.72 years

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