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What is the duration of a two-year bond that pays an annual coupon of 3 percent and has a current yield to maturity of 6

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What is the duration of a two-year bond that pays an annual coupon of 3 percent and has a current yield to maturity of 6 percent? Use $1,000 as the face value. Round your calculations/answers to two decimals. Hint 1: Step 1. McDUR 2. = (1 + y)PVIFAR y Step 2: C/P McDUR =n-[n- McDURP][ :] y Hint 2: McDUR = PV(cash flows weighted by year of receipt) / PV(cash flows) O 1.93 years O 1.99 years O 1.95 years O 1.97 years O 1.91 years

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