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Assume two bonds were bought and can be redeemed at a value of 1000 at the end of 5 years. A bond has a 5%

  1. Assume two bonds were bought and can be redeemed at a value of 1000 at the end of 5 years. A bond has a 5% compound semiannually.

Calculate the Macaulay duration of the bond if the yields are 7% compound 2 times a year. The duration of bonds with 5% coupon:

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