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Attempts Average/4 4. Bond duration 1. 2. 3. STEP: 1 of 3 Investors use a...

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Attempts Average/4 4. Bond duration 1. 2. 3. STEP: 1 of 3 Investors use a bond's price elasticity as a measure of its sensitivity to changes in interest rates; however, an alternative measure that is often used is bond duration, which measures the life of a bond on a present value basis. Suppose you have a bond with a $1,000 par value, a 10 rcent coupon rate (that pays interest annually), three years to maturity, and a 10 percent yield to maturity. The bond's duration is: 2.353 years O 2.517 years 0 2.736 years O 3.010 years Grade Step 1 TOTAL SCORE: 0/4 (to complete this step and unlock the next step) Grade It Now Save & Continue Continue without saving

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