A $1,000 par value, 5% annual coupon bond matures in 4 years. The bond is currently priced at $ 965.35 and has a YTM of 6.0%. What is the Macaulay duration?
A. 4.00 years
B. 43 years
C. 3.68 years
D. 2.81 years
2. The ability to obtain a given equity position at a reduced capital investment and therefore magnify returns, is known as
A. hedging.
B. straddling.
C. leverage.
D. triple witching.