A $1,000, 7% annual coupon bond matures in three years. The bond is currently priced at $974.23 and has a YTM of 8.0%. What is the Macaulay duration?
A) 3.00 years.
B) 1.95 years.
C) 2.81 years.
D) 2.60 years.
Correct Answer:
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