QUESTION 57

1. What is the duration of a 7-year zero coupon bond priced to yield 10%?

   		a. 5.55.
   		b. 5.93.
   		c. 6.34.
   		d. 7.00.

QUESTION 58

1. Which of the following statements is correct about duration?

   		a. Duration will always be less than the maturity for a bond.
   		b. The duration of a bond increases as YTM increases.
   		c. Modified duration is a precise measure of the change in the price of a bond based on a change in interest rates.
   		d. The duration of a portfolio equals the sum of the weighting of each portfolio component multiplied by its duration.