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 par value, a 9 percent coupon rate (that pays interest annually), three years to maturity, and a 9 percent vield to maturity. The bond's duration is: 2.373 years 2.538 years 2.759 years 3.035 years