Q2 (a) Calculate both Macaulay and modified durations of the 8-year, 8.5% coupon bond given a flat yield curve at 10%. (4 marks) (b) Explain why zero coupon bonds have a higher Macaulay Duration than coupon paying bonds of the same return. (2 marks) (c) Explain the differences between the following: (i). a broker and dealer. (i). liquidity and marketability (4 marks)