Consider a 3-year zero coupon with a 5 yield to maturity


Consider a 3-year zero coupon with a 5% yield to maturity. The bond price per $1000 of face value is $863.84. what is the modified duration of this bond?

A. 3 years

b. 2.12 years

c. 2.86 years

d. 1.85 years

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Financial Management: Consider a 3-year zero coupon with a 5 yield to maturity
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