A zero-coupon bond has a par value of $1,000 and matures in 8.6 years. The yield to maturity is 7.3 percent. What's the Macaulay duration?

A. 2.1 years

B. 6.9 years

C. 8.6 years

D. 4.3 years

The following premiums apply to a 9-month bond:

Interest rate risk premium 0.43%

Liquidity premium 0.58%

Default premium 2.35%

Inflation premium 4.11%

Real rate 4.49%

What's the expected nominal interest rate on a 9-month risky security given these values?

A. 10.51%

B. 10.86%

C. 11.96%

D. 11.62%