Use the following information to answer questions 1- 10.
A 5—year 5% annual coupon bond yields 4%. Compute the Macaulay duration of the bond. Do this by filling in the following table. Do not round — keep many decimals so that your duration should be accurate to 4 decimals.
(table)
Time Until payment; Payment Discount at 4%; Weight: Column (1) x Column (4)
1; 50; ___; ___; ___
2; 50; ___; ___; ___
3; 50; ___; ___; ___
4; 50; ___; ___; ___
5; 1050; ___; ___; ___
Column Sum: 1000