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(a) Define the Duration and Modified Duration for a Bond that pays coupons. Provide an intuitive discussion of the meaning of these measures. (b) How

(a) Define the Duration and Modified Duration for a Bond that pays coupons. Provide an intuitive discussion of the meaning of these measures. (b) How can you use Duration measures to immunize a bond portfolio? Explain. (c) Are there any limitations in using Duration measures to immunize a bond portfolio? Explain.

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