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Question
A 6 percent, semiannual coupon bond has a yield to maturity of 7.4 percent and a Macaulay duration of 5.7. The bond has a modified duration of _____ and will have a _____ percentage increase in price in response to a 25 basis point decrease in the yield to maturity.A. 5.4829; 1.35
B. 5.4966; 1.32
C. 5.4966; 1.37
D. 5.3073; 1.33
E. 5.3073; 1.38
Answer
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