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A zero coupon bond of Rs 10,000 has a term to maturity of seven years...

A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue. What is the issue price? What is the duration of the bond? What is the modified duration of the bond?

A.

Rs. 5470/-, 7 years, 6.422

B.

Rs. 6380/- 6 years, 7.368

C.

Rs. 5470/-, 7 years, 5.364

D.

Rs. 6380/-, 6 years, 6.897

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