1a) A bond with a coupon rate of 6% sells with a YTM of 7%. If the bond matures in 10 years, what is the Macaulay duration of the bond? Blank 1. Fill in the blank, read surrounding text. What is the modified duration of the bond? Blank 2. Fill in the blank, read surrounding text.

1b) A taxable corporate issue yields 7.10%. For an investor in the 37.5% tax bracket, what is the equivalent after-tax yield?