An investor buys a $4\mathrm{.}9\%$ annual payment bond with $10$ years to maturity. The bond is priced at a yield$-$to$-$maturity of $3\mathrm{.}6\%.$ What is the bond's Macaulay duration?

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Correct Answer

$8\mathrm{.}25$ margin of error $\frac{+}{.}1\%$

Recall that Macaulay duration in the weighted average time to receive the present value of each cash flow.