Timbukt, Inc. has annual bond payment liabilities of $10 million at the end of the next five (5) years. The firm intends to immunize the bond issuance via two zero-coupon issues with one (1) and four (4) years maturity. Assume a flat yield curve with 8% interest throughout the relevant period. Determine the Macauley Duration of the original debt issuance.

Seleccione una:

a. 4.42 years

b. 1.59 years

c. 3.26 years

d. 2.85 years