Compute for the modified duration 10 Maturity Stated Rate Yield-to-Maturity Macaulay Duration 8.5% 7.5% 4.68699 4.35999...

Question

Question

Answer 1

Answer #1

Modified Duration = Macaulay Duration / [1 + YTM]

= 4.68699 / [1 + 0.075]

= 4.35999

So, 1st option is correct.

Answer 2

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