A bond has a face value of $1,000 and an annual coupon rate of 6 percent. The yield to maturity of this bond is 5 percent, and the bond has 2 years remaining until maturity. Based on this information, this bond's duration is __________ years.

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Duration measures the sensitivity of a bond's price to changes in interest rates, essentially representing the weighted average time until a bond's cash flows are received. In this case, because the bond's coupon rate is higher than its yield to maturity, it indicates that the bond is priced at a premium. This situation typically results in a duration that is slightly less than the bond's time to maturity, as the higher coupon payments contribute to receiving more of the bond's cash flows earlier in the period. Given the options and the context, a duration of 1.9 years is reasonable, reflecting that the bond's price is more sensitive to interest rate changes than a bond with a duration of 2 years or more, but still less sensitive than a bond with a duration of exactly 1 year or significantly more than 2 years.

A Bond Has a Face Value of $1,000 and an Annual