A 10%, 30-year corporate bond was recently being priced to a yieldof 11%. The Macaulay duration for the bond is 11.3 years. Given this information, the bond's modified duration would be

A) 9.05.
B) 10.09.
C) 10.18.
D) 11.22.

Macaulay Duration

A measure of the weighted average time until a fixed income asset's cash flows are received, used to assess interest rate risk.

Yield

The earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment’s cost, its current market value, or its face value.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, adjusting for the bond's yield to maturity.