What is the Macaulay duration and modified duration of a 5-year bond with 7% coupon rate (semi-annual payments) and selling to a yield of 9%?

a.

Macaulay duration = 3.76, modified duration = 3.45

b.

Macaulay duration = 4.27, modified duration = 4.09

c.

Macaulay duration = 4.35, modified duration = 4.16

d.

Macaulay duration = 4.36, modified duration = 4.25