Lenora current holds a 10-year maturity bond. She decides to sell her bond at the end of her investment horizon, which is before the maturity of the bond. The bond has a Macaulay duration of 7 years. Based on the What-if analysis results presented in the table below, is Lenora's investment horizon longer than the 7 years, less than 7 years, or equal to 7 years?   

 

Lenora's bond Scenario 1 Scenario 2 Scenario 3 YTM (%) 9.00% 6.00% 12.00% FV of reinvested coupon at the end of investment horizon $73.60 $67.15 $80.71 Bond's price if sold at the end of investment horizon $97.47 $105.35 $90.39 FV of reinvested coupon plus sale price of bond at the end of investment horizon $171.07 $172.50 $171.10