Problem 9: Betty and Bob buy a 20-year bond with a coupon rate of 7% per annum payable semiannually and a face and redemption value of $1000 and which is priced to yield 10% per annum compounded semiannually. a. Algebraically compute the Terminal Wealth of the bond at the end of term. b. Using the closed form for Macaulay duration (See below and Section 90 Formulae 90) find the Macaulay duration. Your final answer should be in years and correct to 2 places after the decimal point. 1+i (1+i)+n(r - i) i r[(1+i)" -1]+i a. b. Bond (F= M) D M years