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Question
Steel Pier Company has issued bonds that pay semiannually with the following characteristics:
| Coupon | Yield to Maturity | Maturity | Macaulay Duration |
| 10% | 10% | 10 years | 6.76 years |
If the maturity of the bond was less than 10 years, the modified duration would be ________ compared to the original modified duration.
A) larger
B) unchanged
C) smaller
D) The answer cannot be determined from the information given.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Day
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870 760 960 840 Declines
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Q:
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Q:
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Q:
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Q:
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Q:
When life insurance companies seek long term investments, they are focusing on________.
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Q:
One of the major functions of the investment committee is to ________.
A) determine security selection of each portfolio operated by the investment company
B) translate the objectives and constraints of the investment company into an asset universe
C) determine the percentages of each security in the total investment company portfolio
D) calculate and report the overall rate of return to investment company constituents