Q14. Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 8% per annum and coupon payments are made annually. The current market rate is 8% p.a. What is the security’s duration (round your answer to two decimals)? a. 1.44 years b. 3 half-years. c. 1.39 years. d. 1.39 half-years e. 2.78 years.

Q14. Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 8% per annum and coupon payments are made annually. The current market rate is 8% p.a. What is the security’s duration (round your answer to two decimals)? a. 1.44 years b. 3 half-years. c. 1.39 years. d. 1.39 half-years e. 2.78 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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