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8. A bank is planning to make a loan of $1,000,000 to a firm in the steel industry. The loan has a maturity of 2

8. A bank is planning to make a loan of $1,000,000 to a firm in the steel industry. The loan has a maturity of 2 years and annual coupon of 10 percent (annual payment and compounding). The current market interest rate for loans in this sector is 12 percent. What is the Macaulay Duration, Modified Duration, and Dollar Duration of the loan? Show the steps of calculation. (8 points)

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