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Q 3 . Assume Salalah Industrial Company issued bonds in Muscat stock market with 1 5 0 0 OMR face value and 1 2 percent

3 .

Assume Salalah Industrial Company issued bonds in Muscat stock market with

1500

OMR face value and

12

percent annual coupon rate. The maturity yield in Muscat stock market on these bonds is

5

percent and maturity date

4

years. Calculate the Macaulay Duration and modified Duration.

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