Calculate the Macaulay Duration for a Five-Year, $1,000 Par Value

question 123

Multiple Choice

Calculate the Macaulay duration for a five-year, $1,000 par value bond, with a 6 percent coupon and a yield to maturity of 8 percent. Interest is paid annually.

• A) 6.44 years
• B) 5.25 years
• C) 4.44 years
• D) 2.50 years
• E) 1.25 years

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