A $1,000 par value, 5% annual coupon bond matures in 4 years. The bond is currently priced at $965.35 and has a YTM of 6.0%. What is the Macaulay duration?

A) .43 years
B) 3.68 years
C) 2.81 years
D) 4.00 years


Answer: B

Business

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