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Exercise 3.1 Calculate and interpret the Macaulay and modified durations of a a) 3-year 10% semi-annual bond (Bond C) when the required yield is 10%,

Exercise 3.1 Calculate and interpret the Macaulay and modified durations of a

a) 3-year 10% semi-annual bond (Bond C) when the required yield is 10%, and a

b) 3-year zero-coupon bond (Bond D) when the required yield is 10

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