A 14% annual pay coupon bond has 6 years to maturity. The bond is currently trading at par. Using a 25 basis point change in yield, the approximate modified duration of bond is closet to.
A 0.392
B 3.888
C 3.970
The answer shown is B on Kaplan. But how do you find V- & V+ in the first place ?
The question didn’t give YTM% so I can’t seem to solve for V- or V+
Much appreciated.