A bond has a face value of $1000 and coupon payments of $120 annually. This bond matures in three years and is selling in the market for $1160. Market interest rates are 6%. What is this bond's duration? Answer 3 years 5.71 years 1.96 years 2.71 years None of the above

A bond has a face value of $1000 and coupon payments of $120 annually. This bond matures in three years and is selling in the market for $1160. Market interest rates are 6%. What is this bond's duration?
Answer

		3 years
		5.71 years
		1.96 years
		2.71 years
		None of the above

Answer
2.71 years