A bond pays annual interest. Its coupon rate is 9%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 6%.
The duration of this bond is _______ years.
A. 2.44
B. 3.23
C. 3.56
D. 4.1
Answer: C
The modified duration of this bond is ______ years.
A. 4
B. 3.56
C. 3.36
D. 3.05
Answer: C