QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS.
106. An analyst uses a valuation model to estimate the value of an option-free bond at 92.733 to
yield 11%. If the value is 94.474 for a 60 basis point decrease in yield and 91.041 for a 60 basis point
increase in yield, the effective duration of the bond is closest to:
A.
1.85.
B.
3.09.
C.
6.17.