5. How much should be invested today at an annual effective interest rate of 5% to provide for a 9-year annuity with a first payment of $930 in 3 years (at t = 3) and subsequent annual payments are indexed to reflect an inflation rate of 2%? 6. Consider a 14-year bond with 6% semiannual coupons, maturing at par and selling at par. Compute the Macaulay duration of this bond. (Answer in years). a. 9.66 b. 10.25 c. 11.35 d. 12.45 e. 13.28 7. A $100 par value bond with 4% annual coupons and maturing at $108 in 3 years has an effective annual interest rate of 5%. The modified convexity of this bond is equal to: a. 10.13 b. 10.25 c. 10.36 d. 10.45 e. 10.69