Calculate the modified duration for a 8-year bond that pays a 7.1% annual coupon and has a YTM of 5.3%.   6.47   6.30   5.93   6.14   6.71

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.