The following information applies to the next five questions. A bond pays interest yearly has a face value of $1,000, a coupon rate of 9%, four (4) years until maturity, while the market rate for bonds of a similar rating is 6% at the time.Determine the market value of the bond, v0.

Compute the Macauley Duration (MD) for the bond.

Seleccione una:

A.

5.84 years

B.

1.78 years

C.

3.56 years

D.

8.89 years