Adidas, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers Adidas brand products in six categories, including running, Adidas basketball, the Jordan brand, football, training, and sportswear. Assume that Adidas has a three-year $1,000 par value bond with an annual coupon of 5%. This bond currently yields (yield to maturity) 6.5% and is currently priced at $960.27 as well. Required: a) Calculate Macaulay Duration for the above bond? Construct a table to show cash flows and calculations of Macaulay duration b) Calculate Modified Duration for the above bond? c) Assume market interest rates increase by 0.20% (or 20 basis points), calculate the estimated market price change of the bond using Modified Duration. What is the price of the bond after the rate increase? d) How does Macaulay duration differ from Modified duration? Discuss