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1. A security pays cash flows of 100, 200, 300, 400 at the ends of years 1, 2, 3, and 4 respectively. a) Find the
1. A security pays cash flows of 100, 200, 300, 400 at the ends of years 1, 2, 3, and 4 respectively. a) Find the modified duration of the security at an annual effective interest rate of 10%. b) Give an interpretation of your answer to part (a)
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