QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS.

102. A bond is selling for 98.2. It is estimated that the price will fall to 96.6 if yields rise 30

bps and that the price will rise to 100.1 if yields fall 30 bps. Based on these estimates, the

duration of the bond is closest to:

A. 1.78.

B. 5.94.

C. 11.88.