1. An investor purchased a bond with a coupon rate of 4.375%, paid semiannually, at a price yielding 3.450%. The bond matures on August 15, 2035. The trade settled on September 17, 2021.Compute the flat price of the bond, the Macaulay duration and the modified duration of the bond. If the investors time horizon is eight years, is the investor more exposed to an interest rate increase or decrease? Why?