Bond A is a 5-year, $1,000 par value bond that pays an annual coupon of 8%. As you can calculate, the price of this bond will be $960.10 if the annual yield-to-maturity is 9.0 percent. Given this information, determine the duration of this bond. r 4.45 years 4.25 years

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Bond A is a 5-year, $1,000 par value bond that pays an annual coupon of 8%. As you
can calculate, the price of this bond will be $960.10 if the annual yield-to-maturity is 9.0
percent. Given this information, determine the duration of this bond.
C 4.45 years
4.25 years
C
4.35 years
4.30 years
4.40 years
Transcribed Image Text:Bond A is a 5-year, $1,000 par value bond that pays an annual coupon of 8%. As you can calculate, the price of this bond will be $960.10 if the annual yield-to-maturity is 9.0 percent. Given this information, determine the duration of this bond. C 4.45 years 4.25 years C 4.35 years 4.30 years 4.40 years
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