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A bond pays annual coupons at a rate of 4.5% and has face value 1000. The bond has exactly two years until it matures and

A bond pays annual coupons at a rate of 4.5% and has face value 1000. The bond has exactly two years until it matures and has a yield to maturity of 5.2%. Assume that the price of this bond equals 987.02. What is the Macaulay duration of this bond?

a. 1.89 b. 1.96 c. 1.82 d. 2.03

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