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A bond currently has a price of $1,000. The yield on the bond is 5%. If the yield decreases 50 basis points, the price of

  1. A bond currently has a price of $1,000. The yield on the bond is 5%. If the yield decreases 50 basis points, the price of the bond will go up to $1,020. The Macaulay duration of this bond is ____ years.

    A.

    3.60
    B.

    4.15
    C.

    4.20
    D.

    4.05

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