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Coupon rate 6% Maturity 30 Yield 7% Duration 9 Calculate Modified Duration? 7.84 8.12 8.78 8.41

Coupon rate 6%
Maturity 30
Yield 7%
Duration 9

Calculate Modified Duration?

7.84

8.12

8.78

8.41

Solutions

Expert Solution

Answer : Correct Option is 8.41

calculation :

Modified Duration = Duration / (1 + Yield)

= 9 / 1.07

= 8.41 years

jeff jeffy answered 3 years ago
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