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Assume the following zero-coupon bond. The bond has a maturity of 5 years, a face value of 1,000 and it is selling to yield 7%

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Assume the following zero-coupon bond. The bond has a maturity of 5 years, a face value of 1,000 and it is selling to yield 7% annually. Using the Babcock formula, what is the approximate Macaulay Duration of the bond (to the nearest second decimal place) in years? Select one: a. None of the other answers given. b. 8.61 . c. 2.50 . d. 10.00 . e. 5.00

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