Question: Question 7 5 Points Modified duration: A estimates when embedded options will be used. B directly indicates how much the price of a security will

Question 7 5 Points Modified duration: A estimates when embedded options

Question 7 5 Points Modified duration: A estimates when embedded options will be used. B directly indicates how much the price of a security will relatively change given a change in interest rates. is always greater than maturity. D All of the above E A and B Question 8 5 Points A zero-coupon bond with a face value of $10,000 with a remaining time to maturity of two years. The annual yield to maturity is 12%. The duration of this bond is: A 1.81 years. B 1.9 years. 2 years. D 2.3 years E Not enough information is given to answer the

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