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Use the following information to answer questions 9 through 12. Brenton, Berean and Basak (BBB) is...

Use the following information to answer questions 9 through 12. Brenton, Berean and Basak (BBB) is a pension fund specialist looking for a bond with a particular duration to add to their existing portfolio in order to immunize the portfolio. Crawford, Coty and Connor (CCC) has an outstanding bond with a 8.975% coupon, 4 years to maturity, and a yield to maturity of 11.5% that meets BBB’s criterion.

10. What is the modified duration of the bond above assuming interest is paid annually? (2 points)

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ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

modified duration = 3.149

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