A portfolio manager uses her valuation model to estimate the value of a bond as
125.482. Using the same model, she estimates that the value would increase to
127.723 if interest rates fell 30 bps and would decrease to 122.164 if interest rates
rose 30 bps. Using these estimates, the effective duration of the bond is closest to:
A. 2.22.
B. 7.38.
C. 14.77.