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Assume that the interest rate is 3% for all maturities (flat term structure). Compute the duration and the modified duration of the following bonds: (a)

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Assume that the interest rate is 3% for all maturities (flat term structure). Compute the duration and the modified duration of the following bonds: (a) STRIPS that mature in 7 years with a face value of $1,000, (b) A 5-year Treasury note with the face value of $100 and the annually-paid) coupon rate of 3%

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