AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 96 Topic 10 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 96 Topic 10 Discussion

CWM_LEVEL_2 Exam Topic 10 Question 96 Discussion:
Question #: 96
Topic #: 10

Section B (2 Mark)

As a CWM you are considering the following bond for inclusion in the fixed income portfolio of your client:

CWM_LEVEL_2 Question 96

What will be the duration of this bond? and What will be the effect of the changes on the duration of the bond if the coupon rate is 6% rather than 9%?


A.

8 years, Increase


B.

7.33 years, Decrease


C.

6.031 years, Increase


D.

7.012 Years, Decrease


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