You just entered into a variable rate margin loan to fund a stock purchase using Commonwealth banks broker Commsec. Here is a quote from Commsecs Margin Loan Product Disclosure Statement: A variable rate loan is where the interest rate can change at any time. Interest is calculated daily on the outstanding loan balance. You must pay accrued interest monthly in arrears either by direct debit or by capitalising it to the loan. Whats the approximate Macaulay duration of the margin loan?

Select one:

a.

One day.

b.

One month

c.

Equal to the duration of the stock.

d.

The time until the loans next interest payment is due.

e.

The time until the stocks next dividend payment is received.