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A hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each quarter Yield-to-maturity is 8%. You are investing $1,000

A hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each quarter Yield-to-maturity is 8%. You are investing $1,000 on this instrument.

1) What is the price of this financial instrument?

2) What is modified duration of this financial instrument?

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