Question: USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM You are creating a portfolio that consists of the following two bonds. Bond A pays an annual

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM You are creating a portfolio that consists of the following two bonds. Bond A pays an annual 7 percent coupon, matures in two years, has a yield to maturity of 8 percent, and a face value of $1,000. Bond B pays an annual 8 percent coupon, matures in three years, has a yield to maturity of 9 percent, and a face value of $1,000. Refer to Exhibit 13.14. Calculate the Macaulay Duration for Bond B.

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