A $1,000 par value bond with a 8 percent coupon paying semiannual interest has 2 years to maturity and a 8.5 percent yield to maturity. What is the Macaulay duration of the bond?
A) 1.89 years
B) 1.08 years
C) 1.16 years
D) 1.63 years
E) 1.52 years
Correct Answer:
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