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  3. please answer 9-96 a. consider a five-year, 8

please answer 9-96 a. Consider a five-year, 8 percent annual coupon...

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Finance

please answer 9-96
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a. Consider a five-year, 8 percent annual coupon bond selling at par of $1,000. 9-95 What is the duration of this bond? 5 years. b. 4.31 years. c. 3.96 years. d. 5.07 years. e. Not enough information to answer. Answer: B a 9-96 If interest rates increase by 20 basis points, what is the approximate change in the market price using the duration approximation? -$7.98. b. -$7.94. -$3.99. d. +$3.99 -$7.94 c. e Answer: A

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