Consider a consol bond with a required yield to maturity of 9%.What is the consol bond's duration (round to two decimals) ?
A) Infinite as the bond has no maturity
B) 0 years
C) 9.33 years
D) 12.11 years
Correct Answer:
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Q16: The lower the coupon or interest payment
Q17: The leverage adjusted duration gap measures:
A)the change
Q18: The effect of interest rate changes on
Q19: Suppose the yield of consol bond is
Q20: As interest rates decrease the price of
Q22: If yield is greater than 0 then
Q23: Consider a security with a face value
Q24: An FI purchases at par value a
Q25: What is the duration of a five-year
Q26: Duration is a less accurate predictor for
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