Calculate the macaulay duration of the bond

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The current price of a bond is 100. The instantaneous rate of change or derivative of the price of the bond with respect to the yield rate is -700. The yield rate is an annual effective rate of 8%. Calculate the Macaulay duration of the bond. Note: Recall that it is customary to drop the negative when computing volatility or modified duration. (a) 7.00 (b) 7.49 (c) 7.56 (d) 7.69 (e) 8.00

Reference no: EM131167414

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