Bond C is a 2-year bond with a coupon rate of 4%. Interest is paid semi-annually. Market interest rates have now increased by 80 basis points. Calculate the bond's duration using annual data but with the price calculated earlier ($984.92)

Question options:

1)	2.00 years (THIS OPTION IS WRONG)

2)	1.52 years

3)	1.96 years

4)	1.87 years

OPTION 1 IS WRONG