Calculate the Macaulay Duration for a Five-Year, $1,000 Par Value

Multiple Choice

Calculate the Macaulay duration for a five-year, $1,000 par value bond, with a 6 percent coupon and a yield to maturity of 8 percent. Interest is paid annually.

A) 6.44 years
B) 5.25 years
C) 4.44 years
D) 2.50 years
E) 1.25 years