Computation Problem: The Macauley's duration of a bond is defined to be 1.(DCF) + 2. (DCF)+...+n. (DCF) A two-year, $1,000 bond pays an annual coupon of 10 percent. a) What is the duration of this bond if the current yield is 8 percent? 12 percent? (round your final answer to 4 decimal places) b) How does the change in the current yield affect the duration of this coupon bond? c) Consider a two-year, $1,000, zero-coupon bond, calculate the duration with current yield of 8 percent, and 12 percent, respectively. d) How does the change in yields affect the duration of this zero-coupon bond? Pilot Moon = 92.5926+ 84. 7339 - 118.3265. Pa + Vita, 2= 89.1838 + 79.71943 169.0052.g. D-92.5926 +2.81.799 =14808 Pia= 89.2858 + 279.7144 178.3268 169.0052 171.4678 157.4388