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The yield curve is flat at 8% (expressed as an APR with semiannual compounding). ZP Co must make a 10M payment in 2 years and

The yield curve is flat at 8% (expressed as an APR with semiannual compounding). ZP Co must make a 10M payment in 2 years and a 8M payment in 5 years. What is the Macaulay duration of this liability stream?

A. 5 years
B. 3.33 years
C. 3.5 years
D. 3.16 years
E. 2 years

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