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Company Y issues $1 million face value bond that matures in 3 years. The bond has a coupon rate of 10%. Coupon payment is made

  1. Company Y issues $1 million face value bond that matures in 3 years. The bond has a coupon rate of 10%. Coupon payment is made semiannually. The required rate of return is 8% (compounded semiannually). Calculate the duration and modified duration of the bond.

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