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JP Morgan’s Core Bond Fund holds a bond with 5% annual coupon payment and has 3...

JP Morgan’s Core Bond Fund holds a bond with 5% annual coupon payment and has 3 years left to mature. The bond has a yield to maturity of 7.5% and is currently priced at 93.5 per 100 of par. What is the bond’s Macaulay duration?

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Time Macaulay duration 1000*5% cash flows 1 $ 50.00 2 $ 50.00 3 $ 1,050.00 pv@7.5% present value 0.9302 $ 0.8653 $ 0.8050 $ $

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