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The price of a 5-year zero coupon bond with a current yield to maturity (YTM) of 8.4% is 66.27. If the YTM increases to 8.9%,

The price of a 5-year zero coupon bond with a current yield to maturity (YTM) of 8.4% is 66.27. If the YTM increases to 8.9%, the price will decrease to 64.70. If the YTM decreases to 7.9%, the price will increase to 67.88. The effective duration is closest to: O a. 3.18 O b. 5.38 O c. 4.80. O d. 2.40.
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The price of a 5 -year zero coupon bond with a current yield to maturity (YTM) of 8.4% is 66.27 . If the YTM increases to 8.9%, the price will decrease to 64.70 . If the YTM decreases to 7.9%, the price will increase to 67.88 . The effective duration is closest to: a. 3.18 b. 5.38 c. 4.80 . d. 2.40

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