Question 15 (1 point) A perpetuity due pays $40 at the beginning of every year and earns 5% annual effective interest. Calculate the modified duration of the perpetuity. a) 19 b) 18 c) 17 d) 20 e) 16 You are given the following forward rates. Each rate applies for a period of one year: Year Forward Rate 1 4% 2 5% 3 7% 4 3% Calculate the present value of a 3-year bond paying annual coupons of 8% and maturing for $1000. a) 1031.09 b) 1102.36 c) 1083.21 d) 1074.49 e) 1095.52