2. Bond issuance A company is planning to issue a 3-year bond to finance a project. To appeal to investors' preference regarding annual coupon payment, half of the bond issue will bear a coupon of 6.5% and another half is issued at 5.8% p.a. The Treasury department estimates that the market required yield for a bond with similar quality and maturity would be 6.2%. Required: (1) What would be the issue prices for these two bonds if the Treasury department's estimation is correct? (2) What are the modified durations for these two bonds