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What is the macaulay duration

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Reference no: EM132698021

Bond 1 is a 5-year annual bond with a face value of $1,000, a coupon rate of 8%, and a yield to maturity of 7%. Bond 2 is a 20-year zero-coupon bond with a face value of $1,000 and an annually compounded yield to maturity of 4%.

What is the Macaulay duration, D_mac, of Bond 1?

Reference no: EM132698021

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