Question: Consider a bond that pays no par value/face value at the end of its life. It only pays coupons every year as follows: $100(1+0.05) at

Consider a bond that pays no par value/face value at the

Consider a bond that pays no par value/face value at the end of its life. It only pays coupons every year as follows: $100(1+0.05) at the end of year one, $100(1 + 0.05)^2 at the end of year two, and so on. This security lasts for 4 years (i.e., makes 4 payments). The current interest rate is 5% for all maturities. What is the (Macaulay) duration today of the bond? Use two decimal places in years

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