Calculate the duration of an 8% coupon bond that makes annual coupon payments that is currently priced at $950 and has three years left to maturity.

A) 3.2 years
B) 3.0 years
C) 2.8 years
D) 2.6 years
E) 2.4 years

Coupon Bond

A type of bond that offers periodic interest payments to its holder, typically paid semi-annually, until maturity.

Duration

Duration is a measure of the sensitivity of the price of a financial asset to a change in interest rates, often used in the context of bonds to describe how price is affected by changes in rates.

Annual Coupon

The yearly interest payment paid to bondholders, typically expressed as a fixed percentage of the bond's face value.