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 modified duration of this bond is ______ years.

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 modified duration of this bond is ______ years. 




A. 4

B. 3.56

C. 3.36

D. 3.05







Answer: C


Investment Finance

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