Exhibit 18.1 Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 18.1
Use the Information Below for the Following Problem(S)
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually.
-Refer to Exhibit 18.1.Calculate the Macaulay duration for the bond.

A) 4.19 years
B) 4.36 years
C) 8.72 years
D) 8.38 years
E) 9.52 years