Consider a bond with a $1,000 par value, 8% annual coupon, 10 years to maturity, with an interest rate of 6%. The price of the bond is $1,148. What is the duration of this bond? a. 4.62 years b. 6.78 years c. 7.45 years d. 9.93 years

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6FPE
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Consider a bond with a $1,000 par value, 8% annual coupon, 10 years to maturity, with an interest rate of 6%. The price of the bond is $1,148. What is the duration of this bond?

a. 4.62 years

b. 6.78 years

c. 7.45 years

d. 9.93 years 

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