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What is the duration of a 3-year bond with 5% ytm, coupon rate 3% paid annually? A. 2.9108 years B. 2.1 years C. 1.8 years

What is the duration of a 3-year bond with 5% ytm, coupon rate 3% paid annually? A. 2.9108 years B. 2.1 years C. 1.8 years D. 3 years t CF PV(Ct) at 5% wt=PV(Ct)/PV t*wt 1 30 28.57 0.0302 0.0302 2 30 27.21 0.0288 0.0576 3 1030 889.75 0.9410 2.8230

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