Investors use a bond's price elasticity as a measure of its sensitivity to changes in Interest rates; however, an alternative measure that is often used is bond duration, which measures the life of a bond on a present value basis Suppose you have a bond with a $1,000 per value, a 10 percent coupon rate (that pays interest annually), three years to maturity, and a 10 percent Vield to maturity. The bond's duration is: 2.517 years 2.736 years 3.010 years 3.420 years