A 10%, 30-year corporate bond was recently being priced to yield 12%. The Macaulay duration for the bond is 11.3 years. Given this information, the bond's modified duration would be
A. 8.05.
B. 10.09.
C. 9.27.
D. 11.22.
B. 10.09.
D* = D/(1 + y); D* = 11.3/(1.12) = 10.09.
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