Sam buys an eight-year, 5000 par-value bond with an annual coupon rate of 5%.

The bond sells for 5000.

Let d₁ be the duration of the bond just before the first coupon is paid.

Let d₂ be the duration just after the first coupon is paid.

Calculate d₁/d₂ .

Options are:

1.000

0.932

0.972

0.952

0.912