Question: Two bonds have the same annual effective yield rate, r, where r> 0. The bonds have Macaulay duration of 5 years and 6 years with

Two bonds have the same annual effective yield rate, r, where r> 0. The bonds have Macaulay duration of 5 years and 6 years with respect to r. One of the bonds has modified duration of 5.76 years while the other bond has modified duration of d years. Calculate d. (A) 4.760 (B) 4.800 (C) 5.208 (D) 5.240 (E) 6.912

Two bonds have the same annual effective yield rate, \$ r \$, where \$ r>0 \$. The bonds have Macaulay duration of 5 years and 6 years with respect to \$ r \$. One of the bonds has modified duration of 5.76 years while the other bond has modified duration of \$ d \$ years. Calculate \$ d \$. (A) 4.760 (B) 4.800 (C) 5.208 (D) 5.240 (E) 6.912

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