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For the following bond, Par value: 1,000 Coupon rate: 8% paid annually Time to maturity: 3...

For the following bond,

Par value: 1,000

Coupon rate: 8% paid annually

Time to maturity: 3 years

Interest rate: 4%

What is the modified duration?

Select one:

a. 2.6875 years

b. 2.145 years

c. 3.361 years

d. 3.600 years

Solutions

Expert Solution

It is option A

jeff jeffy answered 2 years ago
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