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2. A portfolio that consists a bond and an annuity. Find the Macaulay duration and modified duration of this portfolio at an annual effective rate

2. A portfolio that consists a bond and an annuity. Find the Macaulay duration and modified duration of this portfolio at an annual effective rate of 7%. Bond: 5-year, 10% annual coupon bond with face amount 1000 Annuity: Annuity immediate paying 800 per year for 6 years

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