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A 6% coupon rate, semiannual pay corporate bond was priced for settlement on April 28, 2015 and matures on November 15, 2034. The bond’s yield to maturity was 5.00%, its quoted price was 112.3798 and the accrued interest was 2.7167. If its yield were to decline 5 basis points to 4.95%, the bond’s quoted price would rise to 113.0529, and if its yield were to increase 5 basis points to 5.05%the quoted price would fall to 111.7121. The bonds’ annual approximate modified duration was closest to:   12.53   12.23   11.93   11.65

A 6% coupon rate, semiannual pay corporate bond was priced for settlement on April 28, 2015 and matures on November 15, 2034. The bond’s yield to maturity was 5.00%, its quoted price was 112.3798 and the accrued interest was 2.7167. If its yield were to decline 5 basis points to 4.95%, the bond’s quoted price would rise to 113.0529, and if its yield were to increase 5 basis points to 5.05%the quoted price would fall to 111.7121. The bonds’ annual approximate modified duration was closest to:   12.53   12.23   11.93   11.65

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A 6% coupon rate, semiannual pay corporate bond was priced for settlement on April 28, 2015 and matures on November 15, 2034. The bond’s yield to maturity was 5.00%, its quoted price was 112.3798 and the accrued interest was 2.7167. If its yield were to decline 5 basis points to 4.95%, the bond’s quoted price would rise to 113.0529, and if its yield were to increase 5 basis points to 5.05%the quoted price would fall to 111.7121. The bonds’ annual approximate modified duration was closest to:

 

12.53

 

12.23

 

11.93

 

11.65

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