A bond market trades coupon bonds and zero-coupon bonds with various maturities. (a) Calculate the prices of the following coupon bonds at a yield to maturity of 8%. 

(i) A 4-year maturity coupon bond making 10% annual coupon payments with a face value of £1,000

(ii) An 8-year maturity coupon bond making 6% annual coupon payments with a face value of £1,000 

(b) Calculate Macaulay duration and modified duration for both coupon bonds in (a).