Consider a security with a face value of $100 000, which is to be repaid at maturity. The security pays an annual coupon of 8% and has a maturity of three years. The current discount rate is 10%. What is the security's duration (round to two decimals)?
A. 2.78 years
B. 3 years
C. 0.36 years
D. 1.94 years
What is the duration of a five-year par value zero-coupon bond yielding 10% annually?
A. 0.50 years
B. 2 years
C. 4.40 years
D. 5 years