Possibly be the bond modified duration

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Reference no: EM132020269

1. The bond equivalent yield of a 180-day banker’s acceptance quoted at a discount rate of 4.25% for a 360-day year is closet to:

a) 4.31%

b) 4.34%

c) 4.40%

d) none of the above.

2. A fixed-coupon bond has a Macaulay Duration of 10. Which of the following could possibly be the bond’s Modified Duration?

a) 10.50

b) 15

c) 8

d) none of the above

Reference no: EM132020269

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