b. What is the modified duration and the market value of the two-year maturity amortized loan with two equal annual payments, a par value of $500 originally issued with an interest rate of 8%, but if issued today would yielding 7%. Place all values in the mark-to-market balance sheet above. 500 [1-(1.085)*' 0.085 Loan payment = Year(t) PV Payment t*PV (1.075): 1 P= Duration = Modified Duration = b. What is the modified duration and the market value of the two-year maturity amortized loan with two equal annual payments, a par value of $500 originally issued with an interest rate of 8%, but if issued today would yielding 7%%. Place all values in the mark-to-market balance sheet above. 500 Loan payment 1-(1.085)? 0.085 (1.075)" *PV Year(t) Payment PV 0.9302 0.8653 P= Duration = Modified Duration =