What is the issue price? What is the duration of the bond? What is the modified duration of the bond?

Posted by: Pdfprep Category: GLO_CWM_LVL_1 Tags: , ,

A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue.

What is the issue price? What is the duration of the bond? What is the modified duration of the bond?
A . Rs. 5470/-, 7 years, 6.422
B . Rs. 6380/- 6 years, 7.368
C . Rs. 5470/-, 7 years, 5.364
D . Rs. 6380/-, 6 years, 6.897

Answer: A