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A corporate bond pays quarterly coupons. Its annual coupon rate is 8%. Its par value at maturity is $1,000. The bond matures in 2 years.

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A corporate bond pays quarterly coupons. Its annual coupon rate is 8%. Its par value at maturity is $1,000. The bond matures in 2 years. Its annual yield to maturity is 12%. The Macaulay's duration of this bond is (a) 7.4 years. (b) 4.5 years. (c) 1.9 years. (d) 0.8 years

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