A 20-year 1000 par value 10 semiannual coupon bond with a


1. A 20-year, $1,000 par value, 10% semiannual coupon bond with a modified duration of 17.4 is currently priced at $1,100.

The bond’s current yield is closest to:

A 4.46%.

B 8.91%.

C 9.09%.

D 18.18%.

2. Consider a 25-year, $1,000 par semiannual bond with a 7.5% coupon and a 9.25% yield to maturity. The modified duration of this bond is closest to:

A 8.73.

B 10.08.

C 11.45.

D 12.50.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A 20-year 1000 par value 10 semiannual coupon bond with a
Reference No:- TGS02414883

Expected delivery within 24 Hours