The Johnson National Bank has purchased a bond that has a coupon rate of 6.5% (annual payments) and a face value of $1000. It has 4 years to maturity and is selling in the market for $950.32. The bond makes annual coupon payments. What is the duration of this bond? The first step is to calculate the YTM of the bond. Hint: Use the duration derivation formula from the text as shown on page 237 of Chapter 7. Don't try reverse engineering to find the duration by taking the YTM and then using P=-D[i/(1+i)]P in order to solve for "D"; while this second approach might seem appealing, it will produce a slightly different answer. A. 3.74 years B. 3.64 years C. 3.38 years D. None of the other responses are correct. E. 3.68 years