A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The change in the level of the market interest rate is 0.47%. The modified duration is ________ and the percentage change in price is ________

A) 9.4 years; -.47%
B) 14. years; 4.7%
C) 18.29 years.; -8.6%
D) 18.29 years.; 8.6%

Answer: C

Business

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