A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised 14 YTM, and 10 years to maturity. What is the bond's duration? Multiple Choice 10.00 years 8.39 years 6.45 years 5.20 years 7.35 years Next > of 20

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised 14 YTM, and 10 years to maturity. What is the bond's duration? Multiple Choice 10.00 years 8.39 years 6.45 years 5.20 years 7.35 years Next > of 20

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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Question

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised
14
YTM, and 10 years to maturity. What is the bond's duration?
Multiple Choice
10.00 years
8.39 years
6.45 years
5.20 years
7.35 years
Next >
of 20

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