Question: The following information about bonds A, B, C, and D are given. Assume that bond prices admit no arbitrage opportunities. What is the modified duration

The following information about bonds A, B, C, and D are

The following information about bonds A, B, C, and D are given. Assume that bond prices admit no arbitrage opportunities. What is the modified duration of Bond D? Bond A B Price 91 86 78 ? Cash Flow at the end of Year 1 Year 2 Year 3 100 0 0 0 100 0 0 0 100 5 5 105 D The following information about bonds A, B, C, and D are given. Assume that bond prices admit no arbitrage opportunities. What is the modified duration of Bond D? Bond A B Price 91 86 78 ? Cash Flow at the end of Year 1 Year 2 Year 3 100 0 0 0 100 0 0 0 100 5 5 105 D

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