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a. A bonds Macaulay duration is 7.3 years. If the current annual interest rate is 10%, what is the modified duration of this bond? b.

a. A bonds Macaulay duration is 7.3 years. If the current annual interest rate is 10%, what is the modified duration of this bond?

b. A bond with a par value of $1000 and a 8.5% coupon rate has 6 years to maturity. Coupons are paid semi-annually. If a bond sells for $876, what is the yield to maturity?

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