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2. a) 2. Consider a three-year maturity, 8 percent annual coupon bond selling at par of $1,000. a) What is the Macaulay Duration, Modified Duration,

2. a)

2. Consider a three-year maturity, 8 percent annual coupon bond selling at par of $1,000. a) What is the Macaulay Duration, Modified Duration, and Dollar Duration of the bond? (5 points)

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