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The term structure is flat at 6%. A bond has 10 years to maturity and coupon rate 8%. Coupon payments are semiannual, par values are

The term structure is flat at 6%. A bond has 10 years to maturity and coupon rate 8%.

Coupon payments are semiannual, par values are 100, and interest rates are expressed as semiannual APRs.

(a) Compute the bond price.

(b) Compute the bond's Macaulay and modified duration.

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