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43) A bond portfolio has the following three fixed-rate bonds. Assume annual coupon payments and no accrued interest on the bonds. Prices are per 100

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43) A bond portfolio has the following three fixed-rate bonds. Assume annual coupon payments and no accrued interest on the bonds. Prices are per 100 of par value. Bond Price Maturity (years) Market Value Coupon Yield-to- Maturity Modified Duration A 6 170,000 85.00 2.00% 4.95% 5.42 B 10 120,000 80.00 2.40% 4.99% 8.44 C 15 100,000 100.00 5.00% 5.00% 10.38 The bond portfolio's modified duration is closest to: a) 8.75 years. b) 9.08 years. c) 7.62 years

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