Compute the duration of an 8%, 5-year corporate bond with a par value of $1,000 and yield to maturity of 10%.

A) 3.92
B) 4.28
C) 4.55
D) 5

Corporate Bond

A debt security issued by a corporation to raise funds, promising to pay back the principal along with interest at a specified rate and schedule.

Yield To Maturity

The total return anticipated on a bond if it is held until its expiration date.

Par Value

The nominal face value of a bond or stock as stated by the issuer, often used to determine interest payments.