Answered: A bond of Akshita Ltd has a yield of…

A bond of Akshita Ltd has a yield of 10% if held till maturity. If it has a duration of 4.28 years, the modified duration of this bond would be O a. 3.89% O b. 4.25% O c. 4.89% O d. 3.25%

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

Problem 1PS

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Question

A bond of Akshita Ltd has a yield of 10% if held till maturity. If it has a duration of 4.28 years, the modified duration of this bond would be

O a. 3.89%

O b. 4.25%

O c. 4.89%

O d. 3.25%

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